New Delhi, Oct 8: In a major compliance reform, the 57th GST Council has approved the complete revocation of arrest powers previously held by tax officers while raising the minimum threshold to launch criminal prosecution from ₹1 crore to ₹5 crore.
Under the newly approved guidelines, statutory minimum punishments have been removed, leaving penalties—whether fines, imprisonment, or both—entirely to judicial discretion. Addressing the operational shift, the Finance Ministry noted that with the tax rate structure now settled, the Council has redirected its focus toward day-to-day functional improvements and administrative ease for businesses. To ensure policy predictability, GST rate revisions will now be evaluated and implemented only once a year.
In another relief for taxpayers, the Council decided to constitute a dedicated Committee of Officers to safeguard honest buyers regarding Input Tax Credit (ITC) claims. The committee will draft mechanisms to protect genuine purchasers who hold valid invoices, have received goods, and completed full payments to suppliers against punitive action due to third-party vendor defaults.
