GST Council Scraps Arrest Powers, Lifts Prosecution Limit to ₹5 Crore

8 Oct 2026, 10:40 pm · 2h ago · 1 min read · EntrackrNew

The GST Council has recommended major compliance reforms during its 57th meeting, removing arrest provisions under the goods and services tax framework. The council raised the prosecution threshold from ₹1 crore to ₹5 crore and lowered general penalties from ₹25,000 to ₹10,000 to decriminalize minor business offenses. Additionally, GST refund processing timelines for deficiency memos will drop from 15 days to 10 days, with 90% of zero-rated and inverted duty claims sanctioned provisionally. Small e-commerce sellers can now use platform warehouses as their principal place of business across states, significantly easing inter-state operations.