Home / Business and Economy / GST Arrest Power Axed, Prosecution Limit ₹5 Crore
GST Arrest Power Axed, Prosecution Limit ₹5 Crore
8 Oct
Summary
- Tax officers' power to arrest is removed in certain GST cases.
- Prosecution threshold raised to ₹5 crore from ₹1 crore.
- Compliance simplified for small e-commerce sellers.
The GST Council has made significant changes, notably removing the power of tax officers to arrest individuals in specific Goods and Services Tax-related matters. This decision, announced on Thursday, also includes a substantial increase in the threshold for initiating prosecution, now set at ₹5 crore, a considerable rise from the previous ₹1 crore.
In addition to these enforcement-related adjustments, the council has approved measures to simplify compliance for small businesses operating through e-commerce platforms. This aims to reduce the administrative burden on smaller sellers.
Further procedural improvements include a reduction in the time authorities have to acknowledge refund applications, now set at 10 days, down from 15 days. Employers will also benefit from being able to claim Input Tax Credit on GST paid for employee insurance coverage.
