GST Council Scraps Tax Officers’ Arrest Powers, Raises Prosecution Threshold
What Happened
The GST Council approved major compliance reforms. Tax officers’ powers to arrest for GST violations have been scrapped, and the prosecution threshold has been raised to ₹5 crore from the earlier ₹2 crore. The Council clarified that no changes were made to GST rates. Officials said the move aims to reduce harassment of businesses and ensure prosecution is reserved for serious offences. The Council also discussed streamlining dispute resolution and simplifying compliance procedures.
Key Takeaways
The reforms mark a significant shift toward business‑friendly GST enforcement, reducing discretionary powers and raising the bar for prosecution. This is expected to improve ease of doing business while maintaining strict action against large‑scale tax evasion.