Knowledge Nugget | 57th GST Council meeting: What are the key decisions?

The 57th GST Council meeting took place on October 8, 2026, at Bharat Mandapam in New Delhi, chaired by Union Finance Minister Nirmala Sitharaman. The key decisions made during the meeting include:

1. Implementing significant process reforms to boost business sentiment, such as removing arrest powers from tax officers at the pre-prosecution stage and setting a minimum threshold of Rs 10,000 for show-cause notices.

2. Decriminalising certain offenses, such as intentional frauds and deceit under GST, and proceeding with prosecutions through the criminal code (Bharatiya Nyaya Sanhita).

3. Raising the threshold for prosecution from Rs 1 crore to Rs 5 crore to strengthen a progressive and trust-based tax regime.

4. Reducing the maximum general penalty from Rs 25,000 to Rs 10,000 and introducing a lower penalty of 5% for non-fraud cases.

5. Expanding the ambit of refunds to include input services under the inverted rate structure and capital goods, easing working capital for companies.

6. Recommending deeper data analytics, leveraging technology, and moving away from enforcement-led actions to deepen the tax base under the GST regime.