In a historic move aimed at decriminalizing commercial disputes and boosting corporate confidence, the Goods and Services Tax Council revoked the arbitrary arrest powers previously exercised by tax enforcement officers. Meeting in New Delhi for its 57th assembly, the council increased the minimum statutory threshold for launching criminal prosecutions under the GST framework from ₹2 crore to ₹5 crore.
Union Finance Minister Nirmala Sitharaman, chairing the council meeting alongside state finance ministers, stated that arrest provisions will henceforth apply exclusively to egregious instances involving fake invoicing syndicates and circular billing conspiracies. Furthermore, the council approved a systemic transition moving commodity rate restructuring schedules from sporadic quarterly reviews to a predictable annual timetable.
Trade confederations and tax professionals overwhelmingly hailed the decisions, emphasizing that curtailing summary detention powers removes persistent intimidation hazards confronting compliant enterprises. Corporate legal experts highlighted that establishing higher monetary barriers will significantly reduce frivolous litigation and decongest appellate tribunals across the country.
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Sources:
https://www.thehindu.com/news/top-news-of-the-day-october-8-2026/article71559617.ece