GST Council ends tax officers' arrest power, raises prosecution threshold to Rs 5 crore

India's GST Council has abolished the power of tax officers to arrest individuals and raised the threshold for launching prosecution from Rs 1 crore to Rs 5 crore, the Finance Ministry announced on Thursday. The council, meeting for its 57th session, also approved easier compliance norms for small sellers on e-commerce platforms while leaving GST rates unchanged. It removed the minimum punishment for offences, leaving sentencing to judicial discretion, and reduced the general penalty from Rs 25,000 to Rs 10,000. The ministry stated that GST rate changes will now occur only once a year, as the rate structure is settled. A committee will examine how to protect genuine buyers with proper invoices who have paid suppliers, with a report due within three months.