GST Council Approves Reforms to Arrest Powers and Prosecution Thresholds
The GST Council has implemented major reforms, including the removal of arrest powers for GST officers and raising the prosecution threshold from ₹1 crore to ₹5 crore. Additionally, a committee has been formed to address input tax credit claims for genuine buyers.
First reported 2 hours ago · latest update 1 hour ago
The GST Council on Thursday (October 8, 2026) approved scrapping the arrest powers of GST officers and raised the threshold to launch prosecution to ₹5 crore from ₹1 crore.
"The rate structure is settled, so the Council has turned to how the tax works day to day," the Finance Ministry said, adding that GST rate changes will now happen once a year.
On input tax credit claims, the 57th GST Council decided to set up a Committee of Officers to examine how to protect a genuine buyer who holds a proper invoice, has received the goods, and has paid his supplier in full.
"The Committee of Officers will complete its study within three months, and an agenda will be placed before the next Council meeting," the Ministry said.
The GST Council revoked GST officers' arrest powers.
The threshold for prosecution goes up from ₹1 crore to ₹5 crore. The minimum punishment stands removed, and the punishment- whether fine, imprisonment, or both- is left to judicial discretion in every case, as per the council decision.
The general penalty, which applies where no specific penalty is provided, comes down from ₹25,000 to ₹10,000, the Ministry said.
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GST Council scraps arrest powers of GST officers, ups prosecution threshold to ₹5 crore
On input tax credit claims, the 57th GST Council decided to set up a Committee of Officers to examine how to protect a genuine buyer who holds a proper invoice, has received the goods, and has paid his supplier in full.
1 hour agoGST officers lose arrest powers, Council hikes prosecution threshold to ₹5 crore
The council proposed raising the prosecution threshold from ₹1 crore to ₹5 crore, meaning cases involving amounts below ₹5 crore would not lead to prosecution.
2 hours agoGST Council approves major reforms: Arrest powers scrapped, prosecution threshold raised to Rs 5 crore
GST Council approves major reforms Arrest powers scrapped prosecution threshold raised to Rs crore
2 hours ago