GST Council may strip arrest powers from officers, raise prosecution threshold to Rs 5 crore

The GST Council is reviewing significant changes to enforcement mechanisms under the goods and services tax regime. The proposed modifications include removing arrest powers from GST officials and requiring court orders for any arrests going forward.

Under the new framework being considered, criminal prosecution would be restricted to cases involving amounts exceeding Rs 5 crore. Routine disputes over GST interpretation would be addressed through civil penalties rather than criminal proceedings, keeping such matters outside criminal courts.