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GST Council Approves Major Process Reforms and Raises Prosecution Thresholds
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Moneycontrol•08-10-2026, 17:07
GST Council Approves Major Process Reforms and Raises Prosecution Thresholds
- •The GST Council has approved key process reforms relating to registration and refunds, aiming to reduce procedural delays and improve liquidity for businesses.
- •Arrest powers under GST laws have been removed and prosecution thresholds raised to reduce the scope for criminal proceedings in routine compliance disputes.
- •The proposal allowing businesses to claim input tax credit even when suppliers fail to deposit the tax has been referred to a committee for further examination.
- •A decision regarding the proposal to allow input tax credit on motor vehicles has been deferred until the next GST Council meeting.
Key Questions Answered
Uttar Pradesh Finance Minister Suresh Kumar Khanna announced that all proposals relating to registration and refunds have been approved by the GST Council to reduce procedural delays, make compliance more predictable, and improve liquidity for businesses.
The GST Council approved the removal of arrest powers under GST laws and raised prosecution thresholds to narrow the range of cases triggering criminal proceedings and make enforcement more proportionate.
The proposal to allow businesses to claim input tax credit even when suppliers have not deposited the tax collected from them has been referred to a committee for further examination.
