The Central Board of Indirect Taxes and Customs (CBIC), in an update to the penal provisions for the inspection and search operations under the Goods and Services Tax (GST) regime, via Notification No. 20/2024 – Central Tax dated October 08, 2024, has made a vital substitution in form GST INS-01.
The same revisions align with specific penal provisions with the updated introduced Bharatiya Nyaya Sanhita, 2023 (45 of 2023).
Key Changes in the IPC Sections
The notification replaces the earlier references to sections 179, 181, 191, and 418 of the Indian Penal Code (IPC) with the following sections from the Bharatiya Nyaya Sanhita, 2023:
- Section 214
- Section 216
- Section 227
- Sub-section (3) of section 318
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Such sections deal with identical crimes like misleading authorities, tampering with evidence, negating to answer questions, and making untrue statements in inspections and search operations.
Before and After
- Before: Under sections 179, 181, 191, and 418 of the IPC any attempts to mislead, tamper with proof, or furnish the incorrect statements in the inspections were punishable.
- After: Under sections 214, 216, 227, and sub-section (3) of section 318 of the Bharatiya Nyaya Sanhita, 2023 these offences are punishable.
The very amendment draws GST pertinent penal provisions in compliance with the Bharatiya Nyaya Sanhita, 2023, which is part of India’s legal overhaul.
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The replacement of such sections assures that the legal framework under the GST stays updated with the emerging legal code of the country. The same update shows the focus of CBIC on ensuring clarity and accountability in the GST inspections and search operations.
Companies and professionals must be aware of this change and comply with the updated legal requirements during inspections to prevent penalties associated with misleading or altering evidence.
