GST Arrest Powers: What the Council May Change

The GST Council is expected to consider major changes to tax enforcement on October 7. Here is what the proposals mean.
Today, Section 69 of the Central GST Act lets the Commissioner authorise tax officers to arrest a person in specified offences. The proposal would remove this power. Any arrest would need a court’s approval instead.
Second, the prosecution threshold would rise from Rs 1 crore to Rs 5 crore. Criminal cases would target only large-scale evasion. Nine of the 24 offences now liable for prosecution could be fully decriminalised, with fines replacing jail for many others.
Third, honest buyers get protection. If you hold a valid invoice and paid your supplier, you keep your input tax credit even if someone earlier in the chain defaults. Recovery will chase the defaulter.
Officials say data systems now spot fake credit where it arises. The shift is from arrest-led deterrence to technology-led detection.
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