In Major Reform, GST Council Scraps Tax Officers' Arrest Powers
A taxpayer who files late, makes an error or delays payment will face recovery, interest and a proportionate penalty, but nothing beyond that.
The GST Council has approved measures to simplify business compliance and reduce tax disputes. Taxpayers who file late, make errors or delay payments will face recovery, interest and a proportionate penalty.
The Council has also restricted the arrest powers of tax authorities and increased the monetary threshold for prosecution. According to Free Press Journal, the minimum tax evasion or wrongful ITC amount required to initiate prosecution has been raised from ₹5 crore to ₹10 crore.
These reforms aim to distinguish serious offences from routine compliance disputes. The changes also expand input tax credit eligibility for employee insurance expenses, as per Free Press Journal.
Brief written by urgent.news from NDTV - India News, Free Press Journal — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.
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- GST Council Approves Major Reforms: Prosecution Threshold Raised To ₹10 Crore, Arrest Powers Curbed freepressjournal.in
- GST officers lose arrest powers, Council hikes prosecution threshold to ₹5 crore hindustantimes.com
- GST arrest powers dropped, prosecution threshold raised in key reform indianexpress.com
- GST Council scraps arrest powers of GST officers, ups prosecution threshold to ₹5 crore thehindu.com
- In Major Reform, GST Council Scraps Tax Officers' Arrest Powers ndtv.com
