Amended and updated notes on section 136 of CGST Act, 2017. Detail discussion on provisions and rules related to relevancy of statements under certain circumstances.
Chapter XIX (Sections 122–138) of the Central Goods and Services Tax Act, 2017 deals with the provisions related to offences and penalties. Section 136 of CGST 2017 provides for relevancy of statements under certain circumstances.
Recently, we have discussed in detail section 135 (Presumption of culpable mental state) of CGST Act 2017. Today, we learn the provisions of section 136 of Central GST Act 2017.
Section 136 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 136 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. | 136 |
| Section Name | Relevancy of statements under certain circumstances |
| Updated 2025 Edition | GST Law Book PDF |
Section 136 of Central GST – Relevancy of statements under certain circumstances1
Section 136 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.
A statement made and signed by a person on appearance in response to any summons issued under section 70 during the course of any inquiry or proceedings under this Act shall be relevant, for the purpose of proving, in any prosecution for an offence under this Act, the truth of the facts which it contains, ––
- (a) when the person who made the statement is dead or cannot be found, or is incapable of giving evidence, or is kept out of the way by the adverse party, or whose presence cannot be obtained without an amount of delay or expense which, under the circumstances of the case, the court considers unreasonable; or
- (b) when the person who made the statement is examined as a witness in the case before the court and the court is of the opinion that, having regard to the circumstances of the case, the statement should be admitted in evidence in the interest of justice.
- Section 136 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 136 of CGST Act
Section 136 of the Central Goods and Services Tax (CGST) Act, 2017 deals with the admissibility of statements made by individuals during inquiries or proceedings conducted under the Act. It specifies when such statements can be used as evidence in legal proceedings related to GST violations.
Key Provisions of Section 136:
- If a person makes and signs a statement in response to a summons issued under Section 70 during any inquiry or proceeding under the CGST Act, that statement can be used as evidence in a prosecution for an offense under the Act.
- However, the statement’s admissibility depends on the following circumstances:
(a) When the person who made the statement is unavailable
The statement becomes relevant if the person:
- Is dead
- Cannot be found
- Is incapable of giving evidence (e.g., due to mental or physical incapacity)
- Is deliberately kept away by the adverse party
- Cannot be brought to court without unreasonable delay or expense
(b) When the person is examined as a witness
If the person who made the statement appears in court as a witness, the court may still admit the statement if it deems it necessary in the interest of justice, considering the circumstances of the case.
Purpose and Implications
- This provision ensures that crucial evidence recorded during GST investigations remains admissible, even if the person who provided it is later unavailable.
- It prevents accused individuals from evading liability by influencing or making witnesses unavailable.
- The court retains the discretion to assess the reliability and necessity of the statement before admitting it as evidence.
CGST Section 136 serves to uphold justice in tax-related offenses by allowing recorded statements to be used as evidence under specific conditions. It plays a crucial role in ensuring smooth enforcement of GST laws by preventing procedural loopholes from being exploited.
