Business
GST Council to weigh removing arrest powers on October 7
The Indian Express··4 Oct
The GST Council on October 7 will consider decriminalising offences and removing arrest powers under GST law, two persons told The Indian Express. Centre and states consulted for months after industry criticism of trader arrests. Intentional fraud cases would move under the Bharatiya Nyaya Sanhita instead. Central GST units made 887 arrests in 72,393 cases from 2021-22 to 2024-25.
Prism
What It Means For You
- Legislative changes would follow only after the Council decision and Parliament action.
- Traders facing fake invoice cases today can see arrest under Section 69 of the CGST Act.
- Industry groups have called recent services-sector arrests a harassment tool, sources said.
What's Happening
- The 57th GST Council session is slated for Wednesday, October 7.
- Sources said the Centre may amend law in the Winter Session after Council approval.
- Commissioner-level written reasons are required before GST arrest orders under current rules.
Why Arrests Became Controversial
- GST rolled out in July 2017 amid widespread fake invoice and input tax credit fraud.
- State authority arrests add to the 887 central arrests counted through 2024-25.
- Officials said mere suspicion without credible material cannot justify arrest today.
all-news
