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[BUSINESS] · India · 27 sources

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GST Council to discuss decriminalization and arrest power reforms at October 8 meeting

The 57th GST Council meeting, rescheduled to October 8, 2026, is expected to focus on a significant package of procedural and structural reforms aimed at simplifying compliance and improving the ease of doing business in India. Key proposals under discussion include the decriminalization of certain tax offences and the potential removal of the power granted to tax officials to authorize arrests under Section 69 of the CGST Act. If implemented, arrests could instead require judicial approval.

To reserve criminal prosecution for more serious cases of fraud or tax evasion, the Council is considering raising the monetary threshold for prosecution from Rs 1 crore to Rs 5 crore, with some recommendations suggesting an increase up to Rs 10 crore. The reforms also aim to streamline registration processes, expedite refunds—with a goal of acknowledging claims within 10 days—and improve the flow of input tax credit.

Finance Minister Nirmala Sitharaman and Prime Minister Narendra Modi have highlighted these Next-Gen GST reforms as essential for supporting the ‘Viksit Bharat’ vision by reducing the time and cost of compliance. Recent data shows strong economic momentum, with gross GST collections rising 11.6 percent to Rs 12.46 lakh crore during the April-September 2026 period, and reported taxable supplies growing 25.8 percent year-on-year.

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Bharat Mandapam · Bharatiya Nyaya Sanhita · GST Council · Government of India · India · Ministry of Finance · Narendra Modi · New Delhi · Nirmala Sitharaman

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