GST Council scraps officers' arrest powers, raises prosecution threshold 5cr
Big news for anyone following tax reforms: the GST Council just scrapped the power of GST officers to arrest people over tax issues.
They also bumped up the minimum amount needed for prosecution from ₹1 crore to ₹5 crore.
According to the Finance Ministry, with GST rates now stable, they're shifting focus toward smoother, more routine tax operations.
Penalties reduced to 10K input-tax-credit protections
Penalties for general (unspecified) offenses have been cut down from ₹25,000 to ₹10,000, making things a bit less stressful if you ever slip up.
The Council is also setting up a committee to help protect buyers who've done everything right with their input tax credit claims.
Plus, judges now have more flexibility in deciding punishments for GST offenses since there's no longer a set minimum sentence.
All these tweaks are aimed at making the system fairer and friendlier for regular taxpayers.