GST Council scraps arrest powers for tax officers, raises prosecution threshold to Rs 5 crore

The GST Council has decided to retain all existing GST rates without any changes. In a move aimed at easing compliance burden, the Council has removed arrest powers from tax officers and raised the prosecution threshold to Rs 5 crore, making enforcement less punitive for smaller violations.

The Council has also introduced more favourable regulations for small sellers operating on e-commerce platforms, acknowledging the challenges faced by micro and small businesses under the current GST framework.

These decisions reflect a shift toward a more seller-friendly approach within the GST system. The Council's focus on enhancing tax compliance and streamlining registration processes is intended to encourage voluntary adherence while reducing the fear of punitive action for minor infractions.