GST Council scraps arrest powers of GST officers, ups prosecution threshold to ₹5 crore

Mr. Jindal
2 Min Read

Union Finance Minister Nirmala Sitharaman with Jammu and Kashmir Chief Minister Omar Abdullah, Haryana Chief Minister Nayab Singh Saini, Karnataka Chief Minister DK Shivakumar, Delhi Chief Minister Rekha Gupta, State Finance Ministers and other dignitaries after a group photograph during the 57th Goods and Services Tax (GST) Council Meeting at Bharat Mandapam, in New Delhi on Thursday, October 8, 2026.

Union Finance Minister Nirmala Sitharaman with Jammu and Kashmir Chief Minister Omar Abdullah, Haryana Chief Minister Nayab Singh Saini, Karnataka Chief Minister DK Shivakumar, Delhi Chief Minister Rekha Gupta, State Finance Ministers and other dignitaries after a group photograph during the 57th Goods and Services Tax (GST) Council Meeting at Bharat Mandapam, in New Delhi on Thursday, October 8, 2026.
| Photo Credit: ANI

The GST Council on Thursday (October 8, 2026) approved scrapping the arrest powers of GST officers and raised the threshold to launch prosecution to ₹5 crore from ₹1 crore.

“The rate structure is settled, so the Council has turned to how the tax works day to day,” the Finance Ministry said, adding that GST rate changes will now happen once a year.

On input tax credit claims, the 57th GST Council decided to set up a Committee of Officers to examine how to protect a genuine buyer who holds a proper invoice, has received the goods, and has paid his supplier in full.

“The Committee of Officers will complete its study within three months, and an agenda will be placed before the next Council meeting,” the Ministry said.

The GST Council revoked GST officers’ arrest powers.

The threshold for prosecution goes up from ₹1 crore to ₹5 crore. The minimum punishment stands removed, and the punishment- whether fine, imprisonment, or both- is left to judicial discretion in every case, as per the council decision.

The general penalty, which applies where no specific penalty is provided, comes down from ₹25,000 to ₹10,000, the Ministry said.

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