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The decisions form part of the next phase of GST reforms, with the focus shifting from the rate rationalisation undertaken in September 2025 to improving tax administration, reducing disputes and making compliance less burdensome for businesses.
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Moneycontrol•08-10-2026, 16:51
GST Council Approves Removal of Arrest Powers and Raises Prosecution Threshold
  • •The GST Council has approved measures to curb tax authorities arrest powers and raised the monetary threshold for prosecution from Rs 5 crore to Rs 10 crore.
  • •A new Rs 10,000 monetary threshold for show-cause notices has been introduced to reduce low-value disputes and ease compliance burdens.
  • •Input tax credit has been approved on employers expenditure on employee insurance, providing financial relief to businesses.
  • •Delivery services provided by unregistered delivery partners through e-commerce platforms will now attract a reduced GST rate of 5 percent.
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Key Questions Answered

The GST Council has approved removing tax officers' arrest powers and raising the statutory minimum tax evasion amount required to launch prosecution from Rs 5 crore to Rs 10 crore.

The Council approved a Rs 10,000 threshold for show-cause notices to help reduce the administrative and compliance burden of low-value disputes on taxpayers and tax administration.

The GST rate has been reduced to 5% for delivery services provided by unregistered delivery partners operating through e-commerce operators.

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