GST Council Scraps Arrest Powers, Raises Prosecution Threshold to Rs 5 Crore

The GST Council, chaired by Finance Minister Nirmala Sitharaman, approved removing tax officers' power to arrest taxpayers and raising the prosecution threshold from Rs 1 crore to Rs 5 crore. The general penalty drops from Rs 25,000 to Rs 10,000, refunds speed up, and registration changes gain automatic acceptance. The measures take effect April 1, 2027.