GST Council Scraps Arrest Powers, Raises Prosecution Threshold To Rs 5 Crore
The GST Council decided to form a Committee of Officers to examine ways to safeguard genuine customers.
By Sakshi
New Delhi, October 8: The 57th GST (Goods and Services Tax) Council on Thursday approved several changes to GST enforcement, including removing the arrest powers of GST officers and raising the threshold for launching prosecution to Rs 5 crore from Rs 1 crore. It also reduced the general penalty from Rs 25,000 to Rs 10,000.
Finance Minister Nirmala Sitharaman said the GST rate structure had been settled and the Council would now focus on how the tax system functions on a day-to-day basis. She added that GST rate changes would now be undertaken once a year.
Committee of Officers to Examine Input Tax Credit Claims
On input tax credit claims, the GST Council decided to form a Committee of Officers to examine ways to safeguard genuine customers who have a valid invoice, have received the goods and have made full payment to their suppliers.
"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.
Prosecution threshold raised to Rs 5 crore
The GST Council removed the power of GST officers to make arrests in connection with GST offences.
The threshold for launching prosecution has been raised from Rs 1 crore to Rs 5 crore. The minimum sentence has also been removed, with the punishment - whether a fine, imprisonment or both - left to judicial discretion in each case, according to the Council's resolution.
The general penalty, which applies where no specific penalty is prescribed, has been reduced from Rs 25,000 to Rs 10,000, according to the Ministry.
(Inputs from PTI)
