GST Council Removes Arrest Powers, Raises Criminal Case Threshold to ₹5 Crore

The GST Council has announced major changes to India's Goods and Services Tax law, including removing the power of tax officials to make arrests and raising the threshold for filing criminal cases from ₹1 crore to ₹5 crore. These decisions were made at the 57th Council meeting on October 8. The Council decided to keep current GST tax rates unchanged, with future rate changes to be considered only once a year. The reforms aim to simplify tax procedures, with a focus on using technology and data to detect fraud rather than direct arrests. General penalties for violations will be reduced from ₹25,000 to ₹10,000, and notices for cases involving ₹10,000 or less will be withdrawn. The changes also include easier registration for small businesses selling through online platforms, a simplified annual filing system for small taxpayers with turnover up to ₹5 crore, and faster refund processing. The new reforms are scheduled to be implemented from April 1 next year.