Highlights:

- Is there some indication of Forced Tax Collection from TaxPayers as a condition for not being arrested?

- Is Anticipatory Bail plea maintainable against arrest in GST even before FIR?

- Power to Arrest even before completing assessment or proceedings u/s 73?

The Supreme Court of India, in a recent landmark Judgment, addressed multiple issues concerning the power of arrest under the GST Act and Customs Act. The focal point of the case relates to whether officers under these statutes can arrest individuals without a warrant, particularly in light of prior Judgments and amendments to the legislative framework.

Question 1) Is there some indication of Forced Tax Collection from TaxPayers as a condition for not being arrested?

Data of Arrest and Recovery shown to Court

Analysing the above arrest and recovery data indicates that the number of people arrested is normally in hundreds or more. However, it is to be noted that the figures with regard to the tax demand and the tax collected would, in fact, indicate some force in the petitioners’ submission that the assessees are compelled to pay tax as a condition for not being arrested. Sub-section (5) to Section 74 of the GST Acts gives an option to the assessee and does not confer any right on the tax authorities to compel or extract tax by threatening arrest. This would be unacceptable and violative of the rule of law.

We would observe that in case there is a breach of law, and the assessees are put under threat, force or coercion, the assessees would be entitled to move the courts and seek a refund of tax deposited by them. The department would also take appropriate action against the officers in such cases.

☑ Quarterly | GSTR-3B

GSTR-3B for the Quarter Jan - Mar 2025 (QRMP Taxpayers < 5 Cr - Rule 61) - Category II States.  

* State Category II - Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha or the Union territories of Jammu and Kashmir, Ladakh, Chandigarh and Delhi.

☑ Half-Yearly | ITC-04

ITC-04 for the half year (Oct - Mar 2025) (For taxpayers > 5 Cr. Turnover) - Rule 45.

☑ Annual | ITC-04

ITC-04 for complete FY 2024-25 (For taxpayers <= 5 Cr. Turnover) - Rule 45.

☑ Monthly | GSTR-11

GSTR-11 for the m/o Mar 2025 (Statement of inward supplies by persons having Unique Identification Number (UIN)).

☑ Quarterly | QRMP

Last date for opt-in / opt-out QRMP Scheme for quarter Apr - June 2025 (Rule 61A)