GST Council scraps arrest powers of GST officers, ups prosecution threshold to ₹5 crore
The GST Council has decided to remove the arrest powers of GST officers and increase the prosecution threshold from ₹1 crore to ₹5 crore. Additionally, the council plans to form a committee to address input tax credit issues for genuine buyers.
Why it matters
This policy shift aims to reduce the compliance burden on businesses and curb the potential for harassment by tax authorities, signaling a more business-friendly regulatory environment in India.
The GST Council on Thursday (October 8, 2026) approved scrapping the arrest powers of GST officers and raised the threshold to launch prosecution to ₹5 crore from ₹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 that GST rate changes will now happen once a year.
On input tax credit claims, 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.
"The Committee of Officers will complete its study within three months, and an agenda will be placed before the next Council meeting," the Ministry said.
The GST Council revoked GST officers' arrest powers.
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