GST Council scraps arrest powers, raises prosecution threshold to ₹5 crore

The GST Council has revoked tax officials' power to make arrests and raised the threshold for prosecution from 1 crore to 5 crore rupees, according to the Finance Ministry. This decisive action follows an Indian Express report predicting the move. The changes aim to boost investor confidence and address concerns over excessive use of authority by tax officers. The Council also reduced general penalties from 25,000 to 10,000 rupees and left sentencing discretion entirely to courts, while limiting GST rate changes to once a year. The decision comes after months of talks between central and state governments, prompted by recent arrests of prominent company executives that sparked widespread industry protest.