“ChatGPT and Claude Will Be Used To Prepare GST Prosecution Complaints”, Dr. Sujay Kantawala on proposal of Scrapping of GST Arrest Powers by the GST Council.

The Senior Lawyer, Dr. Sujay Kantawala in his interraction with Juris Hour Team Opined that removal of Power of Arrest under Section 69 of the GST which was recommended in the 57th Meeting of the GST Council, is bound to lead to huge tax implications, as frauds of unheard of amounts will take place and the GST Officer being a toothless tiger will only be a mute spectator.

“We certainly don’t want a “Nigeria on steroids” situation. I, therefore, once again, with folded hands, request the GST Council headed by our Hon’ble F.M. to consider roll back on this recommendation, as instead of killing the messenger or the whistle blower we need to battle the source of the fire and the problem, which is accountability of the Tax Officer at the time of the raid and detection of the offence”, Dr. Kantawala commented.

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The elimination of tax terrorism and arrest on flimsy grounds including midnight arrest and harassment of the taxable person / entity is regularly seen. Therefore, he added “we need to tighten the screws in the hierarchy of tax collection and the GST Department and hold senior officers accountable to watch with an eagle’s eye what mischief the field formations are committing and take immediate action”.

Just because there is gross misuse of a provision that does not mean absolute removal of the provision. “I am quite certain that brokers and pimps are on depression pills on hearing this recommendation. Be that as it may, considering the environment which we live in and the culture that has developed we still need to fight the forces of corruption constantly”, Dr. Kantawala added.

On the other side, the prosecution threshold limit has been fixed. The question is, is there capable work force to draft and file prosecution complaints in a precise and perfect manner? Do the GST Field Formations have the capacity to attend court hearings, give correct instruction to able prosecutors to ensure speedy trials? Do we have adequate courts to deal with complex prosecutions?

Thousands and thousands of criminal cases are pending and for years and years charges are also not framed. One has to only go and witness the state of affairs in our Magistrate and Sessions Courts all over India. By that time, these thousands of prosecutions attain hearing status, the concerned officers would have retired and would be least interested resulting in complete waste of time, paper and tax payer money.

All these factors as well as the fact that prior to cognizance, notice has to be issued to the accused which is mandatory must be taken into consideration.

“Hence, once again, I pray with folded hands that the recommendation to remove the power of arrest completely would not solve the problem which is intended to be conducive to the ease of doing business and bringing in stage-wise accountability and monitoring of every arrest pursuant to a raid or search would bring in adequate transparency and fear and deterrence on part of the taxable person as well as the GST Officials which would be a beacon of hope for genuine and honest tax payers who invariably get caught”, urges Dr. Kantawala.

The termite of gross tax evasion is akin to murder and hence, it is requested that the provision be retained with adequate safeguards, as if section 69 takes a holiday and the prosecution threshold rises, some fraudsters may mistake it for an invitation to laissez-faire: business uninterrupted even when the “business” is fraud! Legitimate trade deserves freedom from needless official interference, but the rule of law must not become rule-without-consequences holiday. Otherwise, the fraudsters may enjoy the party while the public is left to pick up the bill. This is just a little serious humor.

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