GST 2.0: Government Scraps Arrest Powers, Raises Prosecution Threshold to ₹5 Crore

The GST Council has approved substantial reforms to simplify the indirect tax structure and improve compliance. The changes include raising prosecution thresholds and decriminalising several offences, marking a significant shift in GST law enforcement.

Finance Minister Nirmala Sitharaman announced these reforms will take effect from April 1 next year. The move scaps arrest powers for certain violations and raises the prosecution threshold to ₹5 crore, aiming to reduce criminal prosecution for lower-level offences.

Experts view these measures as business-friendly steps that will enhance operational ease for taxpayers and support economic growth by reducing compliance burden.