GST Council Approves Major Reforms: Prosecution Threshold Raised To ₹10 Crore, Arrest Powers Curbed
The Goods and Services Tax (GST) Council has approved several measures aimed at simplifying business compliance, reducing tax disputes and making enforcement provisions less stringent, according to a report by Moneycontrol citing sources. The proposed reforms include restricting the arrest powers of tax authorities, increasing the monetary threshold for prosecution and expanding input tax credit…
The Goods and Services Tax (GST) Council approved major reforms during its 57th meeting, aiming to simplify business compliance and reduce tax disputes. Key changes include raising the GST prosecution threshold from ₹5 crore to ₹10 crore, limiting arrest powers of tax authorities, and expanding input tax credit (ITC) eligibility for employee insurance expenses.
The reforms also introduce a ₹10,000 threshold for issuing GST show-cause notices and reduce GST on delivery services to 5%. These measures build on the GST rate rationalisation exercise in September 2025, with their final impact contingent on legal provisions and implementation rules.
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