India eases punitive rules under GST regime
The council also decriminalised several offences and cut the general penalty to Rs 10,000 as it shifts enforcement toward recovery and compliance.
- The GST Council will consider removing arrest powers during its upcoming 57th meeting on Wednesday, addressing long-standing industry concerns about tax authority overreach.
- Industry leaders have criticized arrest provisions as harassment tools, prompting the Centre and states to hold consultations over nine months seeking consensus on removal.
- For intentional fraud, authorities will proceed under the Bharatiya Nyaya Sanhita criminal code; the Central Board of Direct Taxes removed arrest provisions in September with retrospective effect from April 1, 2026.
- Currently, The Commissioner can authorize arrests based on "reasons to believe" an offense occurred; removal would align GST with the pre-2017 Value Added Tax system.
- Following the GST Council's decision, the Centre expects to introduce legislative amendments during Parliament's Winter Session to formally enable removal of arrest powers under GST laws.
63 Articles
63 Articles
GST Council Removes Tax Officers’ Arrest Power, Raises Prosecution Limit To Rs 5 Crore
A set of significant reforms has been agreed upon by the GST Council to facilitate compliance among businesses as well as reduce unnecessary legal and procedural pressure on taxpayers. As reported at its 57th meeting on October 8, Thursday, Union
GST Council scraps arrest powers, raises prosecution to Rs 5 cr
New Delhi: The GST Council on Thursday, October 8, approved scrapping the arrest powers of GST officers and raised the threshold to launch prosecution to Rs 5 crore from Rs 1 crore. “The rate structure is settled, so the Council has turned to how the tax works day to day,” the finance ministry said, adding … Get the latest updates in Hyderabad City News, Technology, Entertainment, Sports, Politics and Top Stories on WhatsApp & Telegram by subscr…
GST Council scraps arrest power of tax officers, raises prosecution threshold to Rs 5 crore from 1 crore
On input tax credit claims, FM Sitharaman said the 57th GST Council decided to set up a Committee of Officers to examine how to protect a genuine buyer who holds a proper invoice, has received the goods, and has paid his supplier in full.
GST Council approves removal of GST officers' arrest powers; Rs 10,000 floor for show-cause notices, say sources
Council also approves Rs 10,000 threshold for GST show-cause notices; GST on delivery services provided by unregistered riders through e-commerce platforms cut to 5%
How next-gen GST can power India's journey to Viksit Bharat | FM Nirmala Sitharaman writes
In this column, Finance Minister Nirmala Sitharaman outlines the vision behind Next-Gen GST and explains how recent reforms are aimed at reducing tax burdens, simplifying compliance and supporting economic growth. She highlights rising GST collections, stronger business participation, growing consumer demand and the role of states in shaping the reform process.
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