GST Council curbs tax officer arrest powers to ease business operations

India's GST Council, at its 57th meeting chaired by Finance Minister Nirmala Sitharaman, has revoked tax officers' discretionary power to make arrests, requiring court orders for any arrest. This decision aims to ease business operations and reduce fear among traders. The council also raised the threshold for prosecution from 1 crore rupees to 5 crore rupees and reduced standard penalties from 25,000 to 10,000 rupees. West Bengal's Finance Minister praised the structural reforms, noting GST contributes significantly to state revenue. The changes reflect a shift toward data-driven enforcement rather than intimidation, with states supporting the move to rationalize rules and improve the ease of doing business across the country.