India's GST Council Proposes Ending Arrest Powers and Raising Penalty Thresholds

India's GST Council has proposed eliminating arrest powers under GST law and exempting notices for amounts below 10,000 rupees, marking a major shift in enforcement. The recommendations aim to simplify tax procedures and reduce taxpayer burden. The Council also proposed raising the prosecution threshold from 1 crore to 5 crore rupees and reducing general penalties from 25,000 to 10,000 rupees. These changes rely on improved data matching systems to detect fraud rather than punitive measures. The proposals are part of broader process reforms covering registration, returns, refunds, and disputes. A committee will examine protections for genuine users who comply with transaction requirements, with findings expected within three months.