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GST Council Major Move: Officials Lose Arrest Powers and Threshold Raised
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News18•08-10-2026, 18:22
GST Council Major Move: Officials Lose Arrest Powers and Threshold Raised
- •The GST Council meeting chaired by Finance Minister Nirmala Sitharaman approved the withdrawal of arrest powers from GST officials.
- •The minimum tax amount threshold for initiating criminal proceedings under GST law has been increased from 1 crore rupees to 5 crore rupees.
- •The provision for minimum punishment in cases of offenses has been removed, leaving fines and imprisonment to be decided on a case-by-case basis.
- •The applicable penalty for cases where no specific penalty is provided has been reduced from 25,000 rupees to 10,000 rupees.
- •Finance Minister Nirmala Sitharaman stated that the Council emphasized procedural reforms to ease doing business and reduce tax compliance burdens.
Key Questions Answered
The GST Council approved the withdrawal of the power of arrest from GST officials. This change aims to reduce coercive enforcement measures and focus dispute resolution on the recovery of tax, interest, and penalties.
The minimum tax amount threshold for initiating criminal proceedings under the GST law has been increased from ₹1 crore to ₹5 crore.
The provision for minimum punishment in cases of offenses has been removed, leaving the decision of fine, imprisonment, or both on a case-by-case basis. Additionally, where no specific penalty is provided, the applicable penalty has been reduced from ₹25,000 to ₹10,000.
