The Goods and Services Tax (GST) council has scrapped the arrest power of tax officers and raised the prosecution threshold to Rs 5 crore from 1 crore, the Finance Ministry said on Thursday. The GST council has also approved easier norms for small sellers on e-commerce platforms, while there are no changes in GST rates as the council met for its 57th meeting.
“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 threshold for prosecution goes up from Rs 1 crore to Rs 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 Rs 25,000 to Rs 10,000, the ministry said.
With inputs from PTI
GST Council Scraps Tax Officers’ Arrest Power, Prosecution Threshold Raised To Rs 5 Cr, No Rate Change
