Business
GST Council scraps officers' arrest powers
NDTV··4d ago
The GST Council on Thursday approved removing GST officers' arrest powers. Finance Minister Nirmala Sitharaman chaired the meeting. The prosecution threshold rose from Rs 1 crore to Rs 5 crore. The general penalty fell from Rs 25,000 to Rs 10,000. No show-cause notice will issue below Rs 10,000. Minimum punishment was removed, leaving fine or jail to courts.
Prism
What It Means For You
- Late filing, errors or delayed GST payment draw recovery, interest and a proportionate penalty, not arrest.
- Show-cause notices stop where the amount involved is below Rs 10,000.
- Prosecution for GST offences starts only above the Rs 5 crore threshold.
What's Happening
- The 57th GST Council meeting approved the changes on Thursday.
- Business Standard reported refund acknowledgement time was cut from 15 days to 10 days.
- About 61 percent of GST registrations already use the automated three-working-day route.
What the Council changed
- Arrest powers under GST are removed under the Council decision.
- Punishment in each case, fine, imprisonment or both, is left to the judiciary.
- The Hindu BusinessLine framed the package as part of a trust-based GST 2.0 push.
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