{
  "id": 12123997,
  "title": "GST Council may scrap arrest provisions, fast-track refunds with 90% automatic payout",
  "url": "https://urgent.news/2026/10/05/gst-council-may-scrap-arrest-provisions-fast-track-refunds-with-90",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-05T09:50:45.000Z",
  "source": {
    "name": "The Economic Times - Economy",
    "slug": "the-economic-times-economy",
    "url": "https://economictimes.indiatimes.com/news/economy/policy/gst-council-may-scrap-arrest-provisions-fast-track-refunds-with-90-automatic-payout/articleshow/134696716.cms"
  },
  "original_language": "en",
  "account": "The 57th GST Council meeting is set to discuss significant tax compliance changes on October 7, according to Finance Ministry sources. One key proposal involves removing arrest provisions under the GST law, shifting enforcement to civil consequences like tax recovery, interest, and penalties while upholding prosecution for serious cases. The threshold for prosecution is proposed to be raised from Rs 1 crore to Rs 5 crore. Additionally, nine offenses may be entirely removed, and one more partly removed, while 24 would be softened and 11 retained.\n\nAnother major reform entails making refunds more efficient for exporters, with 90% of eligible refund claims to be released automatically after a risk check, and the rest processed post-verification. The refund process would be acknowledged within 10 days, with any delay treated as acknowledgment. The system would leverage data from customs, the Reserve Bank of India, and other sources, eliminating the need for businesses to submit scanned documents separately. This reform would also extend the refund framework to services and plant and machinery, with the latter receiving refunds over five years and the removal of the domestic price cap on duty drawback exporters.\n\nThe compliance package also suggests not issuing show-cause notices for amounts below Rs 10,000 under certain GST provisions, applying to pending adjudication, appeal, and tribunal cases. Since 2017, around 11.3 lakh notices at or below this amount have been issued, with 1.23 lakh awaiting adjudication and approximately 11,800 at the first appeal stage. The proposals also include waiving late fees for delayed returns, rationalizing general penalties, and potentially completing registration for eligible applicants within three working days. This could significantly benefit small taxpayers, easing GST compliance and reducing the administrative burden.",
  "summary": "The upcoming 57th GST Council meeting on October 7 is set to unveil transformative proposals that could reshape GST regulations. Key suggestions may involve the abolition of arrest clauses related to GST, simplified refund procedures for exporters, and adjustments to the prosecution threshold. Furthermore, small taxpayers could benefit from late fee waivers and quicker registration.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}