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Polity & Governance

GST Council reforms ease compliance, limit arrest powers to boost business environment

Hindustan Times - IndiaPrelims · PolityMains · GS2 Governance

The GST Council approved significant process reforms including revoking arrest powers of tax officials and raising the prosecution threshold to ₹5 crore, aiming to reduce disputes and ease compliance burdens for businesses post-GST 2.0 stabilization.

  • GST Council approved process reforms including revocation of arrest powers for tax officials and raising the prosecution threshold from ₹1 crore to ₹5 crore, reducing harassment risks for businesses.
  • Tax certainty enhanced as Council decided to consider rate changes only once annually, effective from April 1 each year, following the September 2025 rate rationalization to two slabs (5% and 18%).
  • Registration process streamlined with automatic approval within 3 working days for low-risk applicants and automatic acceptance of routine changes like additional business addresses.

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Polity & GovernanceGS2

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