KAR SATHI · VISUAL GUIDE
Understand the proposed ₹5 crore GST prosecution threshold, the existing Section 132 framework and why pending cases do not automatically close.
Proposed changes are subject to legislative implementation.
01 · FROM THE GUIDE
GST Prosecution Threshold 2026: ₹5 Crore Limit, Section 132 and Existing Cases Explained
02 · FROM THE GUIDE
The allegation, evidence and legal ingredients determine the nature of a case.
The proposed changes remain subject to legislative implementation.
03 · FROM THE GUIDE
A higher proposed threshold does not automatically close an existing prosecution.
04 · FROM THE GUIDE
GST prosecution is different from an ordinary tax demand.
A tax demand may concern tax, interest or civil penalties; prosecution involves an alleged criminal offence.
05 · FROM THE GUIDE
The Council recommended a ₹5 crore prosecution threshold.
Check the final legislation, commencement date and applicable offence.
06 · FROM THE GUIDE
Yes. This is where many articles on the subject become confusing.
CBIC issued Instruction No. 04/2022-23 dated 1 September 2022 containing guidelines for launching prosecution under GST.
07 · FROM THE GUIDE
Statutory provisions define offences and punishments.
Administrative prosecution guidelines do not themselves amend the statute.
08 · FROM THE GUIDE
The 2022 CBIC guidelines also make an important practical point: prosecution should not be launched merely because a tax demand has been confirmed.
Evidence and the ingredients of the alleged offence matter; a confirmed demand alone is not enough.
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