New Delhi, Oct 8: The GST Council has dismantled key enforcement powers of tax officials, stripping officers of authority to make arrests and quintupling the prosecution limit from ₹1 crore to ₹5 crore.
The decision reflects a broader policy evolution toward compliance facilitation rather than punitive oversight. Under the revamped framework, fixed minimum sentences stand eliminated, placing sentencing and monetary penalties strictly under the purview of judicial discretion. The Finance Ministry emphasized that with basic rate structures stabilized, all future tax rate modifications will be consolidated into a single annual exercise rather than frequent sporadic adjustments.
Addressing long-standing friction surrounding Input Tax Credit (ITC) disputes, the 57th GST Council formed an expert Committee of Officers to establish safeguards for bona fide businesses. The panel will review procedures to ensure that compliant buyers who hold valid invoices and have fully settled vendor payments are not penalized or deprived of tax credits due to non-compliance by their suppliers.
