Clubbing of entities to assess GST penal thresholds may permit aggregation of linked registrations to trigger arrest provisions.
Whether alleged tax evasion across multiple registrations operated by a common controller can be aggregated to trigger arrest provisions under the CGST Act; the High Court relied on material showing common control and a pattern of creating fictitious entities to treat multiple registrations as a unified fraudulent scheme for assessing the statutory threshold for penal prosecution, raising interpretive questions about the definition of person and the absence of an express legislative mechanism to club alleged violations across distinct legal entities. (AI Summary)