CGST arrested Proprietor of firm for not paid Service Tax

The Central Goods and Service Tax(CGST) Bhiwandi Mumbai has arrested Proprietor of firm on 23.02.23 for collected but not paid service tax of Rs.2.26Cr under Sec89(ii) of Finance Act read with Sec 174 of CGST Act. He has been sent to judicial custody.

The arrest was made under Section 89 of the Finance Act read with Section 174 of the CGST Act. He has been sent to judicial custody.

Section 89 deals with Offences and penalties under the service tax regime. Since the Service Tax regime is not subsumed by GST Act, still action can be taken against evasion of service tax with the help of Section 174 of the CGST Act.