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Major GST Law Changes: Officers' Arrest Powers to be Withdrawn, Relief for Traders
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News18•04-10-2026, 23:09
Major GST Law Changes: Officers' Arrest Powers to be Withdrawn, Relief for Traders
- •Central government preparing for major changes in GST law; discussions expected at Oct 7 GST Council meeting.
- •Proposal to withdraw arrest powers from tax officers and mandate court approval for arrests.
- •Threshold for initiating criminal proceedings for tax evasion to be increased from ₹1 crore to ₹5 crore.
- •Criminal proceedings to be limited in disputes over goods classification, valuation, and Input Tax Credit.
- •Consideration also for waiving late fees for small taxpayers for delayed return filing.
Key Questions Answered
The GST Council is considering a proposal to withdraw arrest powers from tax officers and make prior court approval mandatory before any person can be arrested.
There is a proposal under consideration to increase the threshold for tax evasion required to initiate criminal proceedings from the current one crore rupees to five crore rupees.
The reform package proposes softening penal provisions for 24 offenses, completely removing nine of them, and removing mandatory minimum punishments so courts have more discretion.
