Stories
GST Council Strips GST Officials of Arrest Powers in Major Overhaul
- •The 57th GST Council meeting in Delhi, chaired by Union Finance Minister Nirmala Sitharaman, announced major reforms including the complete removal of arrest powers from GST officials.
- •The threshold for initiating criminal prosecution has been significantly raised from ₹1 crore to ₹5 crore.
- •Small e-commerce sellers with a monthly tax liability under ₹2.5 lakh no longer need an office in every state, benefiting nearly 9.5 lakh traders.
- •The general penalty has been reduced from ₹25,000 to ₹10,000, and minimum punishments have been removed, leaving it to judicial discretion.
- •No changes were made to GST rates, and future rate reviews will be conducted only once a year, with most reforms taking effect from April 1, 2027.
Key Questions Answered
During the 57th GST Council meeting chaired by Union Finance Minister Nirmala Sitharaman, the power of arrest was completely removed from GST officials. Additionally, the threshold for initiating criminal prosecution was raised from ₹1 crore to ₹5 crore, the minimum punishment was removed, and the general penalty was reduced from ₹25,000 to ₹10,000.
Small e-commerce sellers are no longer required to have an office in every state. Sellers with a monthly tax liability of less than ₹2.5 lakh can now declare the warehouse of a single e-commerce operator as their principal place of business, benefiting around 9.5 lakh small traders.
Most of the reforms decided during the 57th GST Council meeting will come into effect from April 1, 2027. Furthermore, there are no immediate changes to GST rates, and moving forward, rate reviews will be conducted only once a year.
