The 57th GST Council meeting on October 7 is likely to consider removing the power of tax officers to arrest taxpayers, sources told news agencies.

The proposal centres on Section 69 of the Central GST Act, which lets the Commissioner authorise arrests. The reform would require judicial approval for any arrest. A Finance Ministry official told ANI that data systems can now catch fraud early, so the old safeguards can be relaxed.

The prosecution threshold is also likely to rise from Rs 1 crore to Rs 5 crore. Nine of 24 offences could be fully decriminalised and penalties for others eased, keeping routine disputes outside criminal courts.

Honest buyers would be protected. A buyer holding a valid invoice who paid the supplier could keep input tax credit even if someone up the chain defaults, with recovery directed at the defaulter.

The proposals follow last September’s GST rate overhaul and are part of next-generation GST reforms aimed at simpler compliance.