GST 2.0 makes it less taxing as govt scrap arrest powers, raise prosecution threshold to Rs 5 crore in major overhaul
The GST Council recently approved substantial reforms to simplify the indirect tax structure and improve compliance. These changes include raising prosecution thresholds and decriminalising several offences, signifying a major shift in GST law. Finance Minister Nirmala Sitharaman outlined plans for these reforms to take effect from April 1 next year. Experts believe these measures will enhance…
The GST Council has approved a major overhaul of the indirect tax structure in India, known as GST 2.0, which includes scrapping arrest powers and raising the prosecution threshold to ₹5 crore from the current ₹1 crore. The reforms aim to simplify the GST system, making it easier for taxpayers to register, file returns, claim input tax credit, and refund taxes.
Finance Minister Nirmala Sitharaman emphasized the shift towards automated, data-driven, and risk-based administration, highlighting that 99% of the issues related to GST have been addressed. The council also deferred two key proposals related to input tax credit, which will be discussed by a committee of officers within three months and presented at the next council meeting.
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