GST Council eases compliance and raises prosecution threshold
Quick dive
- The 57th GST Council meeting recommended removing arrest powers of GST officers and raising the prosecution threshold from ₹1 crore to ₹5 crore.
- The general GST penalty is proposed to fall from ₹25,000 to ₹10,000, while refund, registration and input-tax-credit processes are to be eased.
- The Union Finance Minister said 99% of GST rate and process issues had been addressed, with changes expected from April 1, 2027.
- The measures target litigation, certainty of tax treatment and compliance costs, especially for small taxpayers; the report says GST rates were not changed at this meeting.
- exam_relevance: tests the constitutional GST Council, cooperative fiscal federalism, input-tax credit and tax administration; the exact thresholds and penalty change provide a concrete prelims data pair, while GST Council composition and recommendations echo UPSC’s recurring constitutional-body questions.
Full explanation
This explanation is available with full current-affairs access.
Log in to continue