GST Council meeting today: Cutting across divide, 5 big states oppose end of taxmen’s arrest powers

The 57th Goods and Services Tax (GST) Council meeting in Delhi today brought together states and the Centre to discuss process reforms, including the proposal to remove arrest powers under GST. However, at least five major states – Maharashtra, Gujarat, Uttar Pradesh, Karnataka, and Andhra Pradesh – have expressed reservations about scrapping the arrest provision.

These states argue that removing the arrest powers would make the indirect tax regime "toothless." While the proposal aims to remove arrest powers except in prosecution cases, states are seeking an additional layer of arrest powers, such as civil arrest in cases of serious violations. The Council meeting, initially postponed by a day, will now take place on Thursday, with Union government officials using the extra day to meet with GST chief commissioners and address residual concerns, particularly over the 'no-arrest' proposal.

The ultimate goal is to enforce tax compliance through monetary consequences rather than custody, and the proposal will be debated at the Council meeting to determine the appropriate form of arrest powers.