GST 2.0's next move: Council may scrap officers' arrest powers, raise prosecution bar to Rs 5 crore
The GST Council is weighing changes to GST enforcement, including ending officials' arrest powers and shifting to court-ordered arrests. Criminal prosecution may be limited to cases involving more than Rs 5 crore, while routine disputes over GST interpretation could be handled through civil penalties and kept outside criminal courts.
The Goods and Services Tax Council is set to evaluate significant reforms to tax enforcement at its upcoming meeting on October 7, according to PTI. These proposed changes could include removing the authority of GST officers to arrest taxpayers and requiring a court order for arrests. This could be part of the government's Next-Generation GST reforms.
The Council may also consider raising the threshold for criminal prosecution from Rs 1 crore to Rs 5 crore, focusing on more serious cases while addressing lower-value disputes through tax recovery and penalties. Routine disagreements over GST classification, valuation, or input tax credit would be kept outside the criminal process.
The shift in enforcement priorities aims to prioritize data-led detection and financial recovery over arrest.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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