GST reforms resolve 99% of rate and process issues, says Sitharaman

Finance Minister Nirmala Sitharaman announced that next-generation GST reforms have resolved about 99 percent of tax rate and process issues, following the 57th GST Council meeting on Thursday. The Council recommended removing arrest powers under GST, raising the prosecution threshold from ₹1 crore to ₹5 crore, and reducing general penalties from ₹25,000 to ₹10,000. It also limited goods inspections to supplier or destination state officers, requiring specific intelligence and Joint Commissioner-level authorization to stop vehicles. Additional measures include no demand notices for tax amounts below ₹10,000, simplified registration for small e-commerce sellers, and a committee to examine input tax credit concerns. No GST rates changed, with reforms set for staggered implementation starting April 1, 2027.