The GST Council is set to discuss significant amendments to Goods and Services Tax (GST) enforcement during its upcoming meeting on October 7. Central to these proposed changes is a measure that would strip tax officials of their arrest powers, necessitating a court order for any arrests related to tax offences. This alteration is part of the government’s ongoing Next-Generation GST reform initiative, following a significant rate restructuring implemented in September 2025.
The proposed reforms also include increasing the threshold for initiating criminal proceedings from ₹1 crore to ₹5 crore and redefining the types of offences subject to prosecution. Specifically, the changes aim to focus prosecution on serious fraud or evasion cases, while easing action against routine disputes such as classification, valuation, or Input Tax Credit claims. This shift is intended to promote a more data-driven and risk-based approach to tax enforcement, minimizing reliance on arrests.
Additional proposals include enhancing administrative processes with streamlined registration, expedited refunds, and simplified compliance procedures. Under the new framework, offences such as late return filings or minor disputes wouldn’t result in arrest if taxes owed, plus interest and penalties, are settled.
Supporters of the changes argue they reflect a shift from punitive measures to a rational approach that builds trust between the government and businesses. Experts warn, however, that eliminating arrest powers may reduce deterrents against tax fraud. The reforms are seen as aligning with broader efforts to decriminalize various economic offences across the regulatory landscape.
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