Author: Nishtha Mehrotra | EQMint
Synopsis:
- GST prosecution threshold raised to ₹5 crore.
- Arrest powers under GST law proposed to be scrapped.
- Minimum ₹10,000 threshold proposed for issuing GST notices.
India’s GST Council has recommended major changes to tax enforcement, including scrapping arrest powers under GST law and raising the prosecution threshold to ₹5 crore. The proposed reforms aim to reduce the criminalisation of routine tax compliance issues while retaining action against serious tax offences.
The Council, chaired by Finance Minister Nirmala Sitharaman, has also recommended greater judicial discretion in deciding punishments, including fines and imprisonment. Taxpayers will still be subject to applicable interest, penalties and recovery proceedings for outstanding dues.
Another key proposal introduces a minimum ₹10,000 threshold for issuing GST notices, aimed at reducing disputes over small amounts. The changes are intended to make GST compliance less burdensome for businesses and taxpayers.
The recommendations mark a shift towards a more proportionate approach to tax enforcement. Their implementation will depend on the necessary legal and procedural changes.
Source: News On AIR
Disclaimer: This article is for information purposes only and is not investment advice.
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