Amended and updated notes on section 135 of CGST Act, 2017. Detail discussion on provisions and rules related to presumption of culpable mental state.
Chapter XIX (Sections 122–138) of the Central Goods and Services Tax Act, 2017 deals with the provisions related to offences and penalties. Section 135 of CGST 2017 provides for presumption of culpable mental state.
Recently, we have discussed in detail section 134 (Cognizance of offences) of CGST Act 2017. Today, we learn the provisions of section 135 of Central GST Act 2017.
Section 135 of the Central Goods and Services Tax Act, 2017 has been notified by the Ministry of Finance vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017. This notification was come into force from 1st July, 2017 i.e. the commencement date of section 135 is 1-7-2017.
| Name of Act | The Central Goods and Services Tax Act 2017 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Central Board of Indirect Taxes & Customs |
| Governing body | GST Council |
| Number of Chapters | 21 |
| Number of Sections | 174 |
| You are reading: | |
| Chapter No. | XIX |
| Chapter Name | Offences and Penalties |
| Section No. | 135 |
| Section Name | Presumption of culpable mental state |
| Updated 2025 Edition | GST Law Book PDF |
Section 135 of Central GST – Presumption of culpable mental state1
Section 135 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017.
In any prosecution for an offence under this Act which requires a culpable mental state on the part of the accused, the court shall presume the existence of such mental state but it shall be a defence for the accused to prove the fact that he had no such mental state with respect to the act charged as an offence in that prosecution.
Explanation: For the purposes of this section, ––
- (i) the expression “culpable mental state” includes intention, motive, knowledge of a fact, and belief in, or reason to believe, a fact;
- (ii) a fact is said to be proved only when the court believes it to exist beyond reasonable doubt and not merely when its existence is established by a preponderance of probability
- Section 135 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017. ↩︎
Notes on Section 135 of CGST Act
Section 135 of the Central Goods and Services Tax (CGST) Act, 2017 establishes a legal presumption regarding the mental state of an accused in cases of prosecution for offenses under the Act.
Key Points:
- Presumption of Culpable Mental State:
- If an offense under the CGST Act requires mens rea (a guilty mind or intention), the court automatically presumes that the accused had the required mental state.
- This shifts the burden of proof onto the accused to prove otherwise.
- Defence Available to the Accused:
- The accused has the right to prove that they did not have the required mental state regarding the alleged offense.
- This means they must provide evidence that the act was done without fraudulent intent, knowledge, or belief that they were violating the law.
- Definition of “Culpable Mental State”:
The section explicitly clarifies that the term “culpable mental state” includes:- Intention – A deliberate decision to commit an offense.
- Motive – The reason behind committing an act.
- Knowledge of a fact – Awareness of relevant information.
- Belief or Reason to Believe – Holding an assumption that a certain fact is true.
- Standard of Proof:
- The accused must prove their innocence beyond a reasonable doubt, which is a higher standard than merely proving it is more likely than not (preponderance of probability).
- This makes it difficult for the accused to escape liability unless they provide strong evidence.
Practical Implication:
- This provision is strict and ensures that individuals facing prosecution cannot simply deny knowledge or intent.
- They must actively disprove their guilty mental state, making enforcement against tax fraud and evasion stronger.