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

The Central Board of Indirect Taxes and Customs has issued FAQs confirming a major overhaul of GST enforcement. Arrest powers under Section 69 are completely removed, and prosecution for tax fraud will now require evasion exceeding Rs 5 crore, up from Rs 1 crore. Courts gain discretion to impose fines instead of mandatory jail terms, and refunds under the inverted duty structure are expanded to aid manufacturers and exporters.