57th GST Council Meeting Scraps Arrest Powers, Raises Prosecution Threshold

The 57th GST Council meeting was rescheduled twice before being set for October 8. The government cited "unavoidable circumstances" for the revised schedule, according to Business Line.

The agenda was wider than tax rates. NDTV Top Stories reported that the Council, chaired by Union Finance Minister Nirmala Sitharaman and comprising state ministers, would discuss changes to registration, returns and refunds.

On October 6, The Hindu reported that the Centre planned a five-pronged reform proposal. Finance Ministry sources said it covered process reforms, structural reforms, ease of living and doing business, exports of services, and e-commerce.

That same day, NDTV Top Stories reported that broad rate changes were not expected. Sources described only a limited set of rate rationalisation and clarification issues on the agenda.

On October 7, The Hindu reported that tax experts wanted reforms to move beyond rates and address processes and compliance. It said the New Delhi meeting would be the Council's first since September 3-4, 2025.

Enforcement became a point of contention. An October 7 headline from Indian Express reported that five big states opposed ending tax officers' arrest powers. That headline described the meeting as taking place "today", while the scheduling reports placed it on October 8.

Ahead of the meeting on October 8, Business Line reported that scrapping arrest powers and decriminalisation were among the proposed reforms. Later coverage from India Today reported that the Council had approved the removal of arrest powers and raised the prosecution threshold to Rs 5 crore.

The story has moved from a postponed meeting to an approved enforcement overhaul. According to Times of India Top Stories, the Council abolished tax officers' arrest powers and increased the prosecution threshold from Rs 1 crore to Rs 5 crore.

That does not mean tax errors or delayed payments carry no consequences. NDTV India reported that a taxpayer who files late, makes an error or delays payment will face recovery, interest and a proportionate penalty.

The Council also decided to establish a Committee of Officers to examine protection for genuine buyers claiming input tax credit, The Hindu reported. The review concerns buyers who hold a proper invoice, have received the goods and have paid their supplier in full.

The next issue is implementation. Before approval, Business Line reported that proposed GST law changes would be introduced in stages beginning early next year. The supplied coverage does not establish a final implementation timetable for the approved measures.

The buyer-protection review also remains pending. The committee's work will determine how the concerns described by The Hindu are addressed; the coverage reports a review, not a settled new entitlement.