Signal Desk · Companies

GST Council removes arrest powers, raises prosecution bar to Rs 5 crore

2026-10-08 · 1 source · Economic Times CFO

In short

The GST Council said on Thursday that GST rates will stay the same. It also removed arrest powers from tax officers and raised the prosecution threshold to Rs 5 crore.

This may ease pressure on small sellers and other taxpayers. The reporting does not say when the new rules start or whether there will be more changes later.

What the reporting says

The GST Council concluded on Thursday that existing GST rates would stay unchanged while it removed arrest authorities from tax officers and lifted the prosecution threshold to Rs 5 crore. The publisher summary also says the Finance Ministry called the current rate structure settled, and the council moved to make e-commerce compliance friendlier for small sellers. The immediate consequence is a lighter enforcement and compliance burden, but the reporting does not say how soon the changes will apply.

Why it matters

The GST Council said existing GST rates would remain unchanged, removed arrest powers from tax officers and raised the prosecution threshold to Rs 5 crore. The council also introduced friendlier rules for small sellers on e-commerce sites, according to the summary. These steps point to a softer compliance stance, but the reporting does not provide the implementation schedule or detailed legal wording.

Touches: Taxation, Companies, Markets, Government

Sources