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PM Modi Hails GST Reforms Praising Greater Decriminalisation And Lower Compliance Costs
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News18•08-10-2026, 21:27
PM Modi Hails GST Reforms Praising Greater Decriminalisation And Lower Compliance Costs
- •Prime Minister Narendra Modi welcomed the GST Council reforms, highlighting that changes like the removal of arrest provisions and simpler procedures will have a very positive impact.
- •The reforms focus on faster decisions, lower compliance costs, automated refunds, and a trust-based administration to make GST more efficient and transparent.
- •The GST Council proposed removing the power of arrest, raising the prosecution threshold from Rs 1 crore to Rs 5 crore, and reducing the general penalty to Rs 10,000.
- •Under the new proposals, no GST notice will be issued for monetary amounts below Rs 10,000.
- •A Committee of Officers will examine protection measures for genuine buyers who possess proper invoices, received goods, and paid suppliers in full.
Key Questions Answered
The 57th GST Council meeting held in New Delhi approved major reforms including the removal of arrest powers under GST, raising the prosecution threshold from Rs 1 crore to Rs 5 crore, removing minimum punishment, lowering the general penalty to Rs 10,000, and ensuring no notices are issued for amounts below Rs 10,000.
Enforcement will now rely on detection using automated invoice-matching capabilities rather than deterrence, and tax notices will no longer be issued for monetary amounts below Rs 10,000.
The GST Council is examining protections for genuine buyers who hold a proper invoice, have received goods, and paid suppliers in full, with a Committee of Officers studying the issue to report back within three months.
