GST Council scraps tax officers' arrest powers; prosecution threshold raised to Rs 5 cr
The Indian GST Council has implemented several reforms, including the removal of arrest powers for tax officers and an increase in the prosecution threshold to Rs 5 crore. These changes aim to simplify compliance for businesses and reduce procedural burdens.
Why it matters
These regulatory shifts represent a significant easing of the tax enforcement environment for Indian businesses and e-commerce sellers.
The Goods and Services Tax (GST) Council on Thursday recommended a series of changes aimed at easing compliance, reducing procedural burdens and simplifying the GST regime, while leaving the existing tax rate structure unchanged.Among the key decisions, the Council scrapped the arrest powers of tax officers and raised the threshold for prosecution to Rs 5 crore from Rs 1 crore. It also recommended common standards for GST notices and proceedings and decided that no notices would be issued for monetary amounts of Rs 10,000 or below. Pending notices below the threshold will also be withdrawn.The Council approved easier compliance norms for small sellers on e-commerce platforms and recommended allowing employers to claim input tax credit on GST paid on employee insurance cover.
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