GST Council Scraps Arrest Powers for GST Officers, Raises Prosecution Threshold to ₹5 Crore

The 57th GST Council, in a significant reform, has decided to scrap the arrest powers of GST officers and raise the prosecution threshold to ₹5 crore. The decision was taken during the Council's latest meeting, aiming to ease compliance burdens and reduce arbitrary enforcement actions.

In addition to these changes, the Council has set up a Committee of Officers to examine how to protect genuine buyers who hold proper invoices, have received goods, and have paid their suppliers in full, particularly concerning input tax credit claims. This move addresses long-standing concerns about harassment of honest taxpayers.

The reforms are expected to enhance the ease of doing business in India, potentially boosting investor confidence. However, the details of the committee's recommendations and the implementation timeline are yet to be announced. The decision marks a shift towards a more taxpayer-friendly GST regime.