GST 2.0 reforms: Council may curb arrest powers, ease ITC rules

India's GST Council is meeting in New Delhi to consider sweeping reforms, including removing tax officers' arrest powers and unblocking input tax credits on several business expenses. The proposals aim to complete the GST 2.0 makeover. The 57th Council meeting, chaired by Finance Minister Nirmala Sitharaman, may require court orders for arrests, raise the prosecution threshold from Rs 1 crore to Rs 5 crore, and unblock credit on employee insurance, telecom towers, and certain vehicles. Refunds on plant and machinery and input services could be paid in monthly installments over five years. Other proposals include a single registration application for multiple states, simplified compliance for small taxpayers, nationwide e-commerce selling from one verified address, and treating supplies to overseas branches as exports. The reforms shift from procedure-heavy compliance to automated, data-driven administration.