GST Council approves 10 major reforms: no arbitrary arrests, faster refunds, lower penalties

India's GST Council, in its 57th meeting chaired by Finance Minister Nirmala Sitharaman, approved 10 major reforms focused on easing business processes. The most significant change removes the power of arbitrary arrest by GST officers, shifting the system to data and automation. The reforms simplify registration, with low-risk businesses getting auto-approval in three days. Refund processing time is cut to 10 days, with 90% of cases auto-approved. Input tax credit is extended to employee insurance and telecom towers. The threshold for prosecution rises from ₹1 crore to ₹5 crore, and standard penalties drop from ₹25,000 to ₹10,000. Other changes include automatic business cancellation for small taxpayers, restrictions on roadside goods checks, and benefits for e-commerce sellers using platform warehouses. No tax rates were changed, as rate revisions will now be considered annually. Industry body CMAI welcomed the reforms but expressed disappointment over the 18% GST on clothing above ₹2,500.