GST Informant Reward Scheme launched to tackle Tax Evasion [Read Circular]

The central government, with a view to tackle the GST defaulters, has launched a reward scheme for the informants who give information on tax evasion to the department.

A circular issued by the Central Board of Indirect Taxes and Customs (CBIC) on Friday said that consequent to the introduction of GST, a need was felt to include recovery in cases under CGST and IGST Acts under the Reward Guidelines to ensure their parity with cases booked under the Customs Act, NDPS Act, Service Tax and Central Excise Acts.

“References were also received in the Board to treat officers of other Government agencies, who play a role in the detection of cases, at par with CBIC officers, irrespective of the fact whether the seizure has been affected by these agencies or by officials of CBIC. Further, it was also brought to the notice of the Board that for considering reward proposals of Rs. 50 lakh or more for informers, the composition of the Apex Reward Committee needed to be changed to include any two Principal Chief Commissioners / Chief Commissioners in place of the jurisdictional Chief Commissioners as the latter were mostly stationed out of Delhi and scheduling their meetings with DGRI and DG, GSTI often proved difficult.”

The circular made some necessary amendments to the Reward to informers and Government Servants, 2015 to extend the benefit of the scheme to the informants under GST also.

“The amended reward guidelines will also be applicable to cases which have not been processed till date. Further, in cases where only advance reward has been recommended by the Committee on or before the date of issue of these amendments in the reward guidelines, whether the advance reward has already been disbursed or pending disbursement, the amended guidelines would be applicable while processing for final reward,” the circular said.