India's GST Council Ends Tax Officers' Arrest Powers, Raises Prosecution Threshold

India's GST Council has abolished the arrest powers of tax officers and raised the prosecution threshold to Rs 5 crore from Rs 1 crore, a major reform announced Thursday. The decision removes minimum punishments, leaving sentencing to judicial discretion in each case. The general penalty for unspecified violations has been reduced from Rs 25,000 to Rs 10,000. Taxpayers filing late, making errors, or delaying payments will now face only recovery, interest, and proportionate penalties, without criminal consequences. Finance Minister Nirmala Sitharaman said the Council prioritized process reforms to improve ease of doing business and reduce compliance burdens, responding to widespread complaints from businesses about stringent tax practices. No changes were made to GST rates.