Archive · 8 Oct 2026
GST Council Weighs Enforcement and Compliance Reforms
The GST Council is a group of representatives from India’s central and state governments that discusses the country’s goods and services tax.
Its 57th meeting was moved to October 8, 2026, after being scheduled for October 7.
The Secretariat said the change was due to “unavoidable circumstances.”
The Council is expected to discuss ways to make tax forms, refunds and disputes easier for businesses.
One proposal would limit tax officers’ arrest powers and raise the amount needed before criminal prosecution can begin.
Serious fraud could still be prosecuted, and tax recovery or penalties would still be possible.
Another idea would let eligible businesses receive most of a refund sooner after a risk check.
These ideas are proposals for discussion, not confirmed decisions.
Some states have expressed concern that reducing enforcement powers too much could weaken tax enforcement.
The 57th GST Council meeting was rescheduled from October 7 to October 8, 2026, in New Delhi; the Secretariat cited “unavoidable circumstances.”
The Council is considering changes to GST registration, returns, refunds, input tax credit and dispute resolution, with the stated aim of reducing compliance burdens.
Proposals include curbing tax officers’ arrest powers, raising the prosecution threshold from ₹1 crore to ₹5 crore, and narrowing prosecution for non-fraud disputes; serious fraud could remain prosecutable.
Refund proposals include acknowledging applications within 10 days and releasing 90% of eligible claims after risk assessment, subject to verification.
Other proposals include fewer notices for demands below ₹10,000, protections for good-faith ITC claimants, easier registration for small e-commerce sellers, and ITC on employee insurance.
- Who
- The GST Council, chaired by Union Finance Minister Nirmala Sitharaman and comprising representatives from the Centre and states.
- What
- The Council is considering GST enforcement and process reforms, including proposals on arrest powers, prosecution, registration, refunds, input tax credit and disputes.
- When
- October 8, 2026; the meeting was rescheduled from October 7.
- Where
- New Delhi.
- Why
- The proposals are intended to simplify compliance, reduce disputes and costs, and improve refunds and input tax credit processes.
Supporters of curbing arrest powers
States concerned about enforcement
Balance between taxpayer safeguards and enforcement
Supporters of curbing arrest powers
Supporters of the proposed reforms say routine classification, valuation or other non-fraud disputes should not escalate into criminal proceedings, and enforcement should focus on recovery, interest and penalties.
States concerned about enforcement
At least five states—Maharashtra, Gujarat, Uttar Pradesh, Karnataka and Andhra Pradesh—were reported to have concerns about sweeping curbs, arguing that the tax regime should not be rendered “toothless” and seeking an additional measure for serious violations.
- Meeting
- 57th GST Council meeting
- Date
- October 8, 2026; rescheduled from October 7
- Original schedule
- Initially planned for September 12 and moved to October 7 because of the BRICS summit in New Delhi
- Proposed prosecution threshold
- Increase from ₹1 crore to ₹5 crore
- Proposed refund timeline
- Acknowledge applications within 10 days; 90% of eligible claims could be released after a risk assessment
- Low-value notices
- A proposal would bar GST notices for demands below ₹10,000, including some pending cases
- Enforcement proposal
- Consider curbing tax officers’ arrest powers, with judicial authorisation proposed in some accounts; serious fraud could remain prosecutable
Sources
57th GST Council Meeting Today: Faster Refunds, ITC Reforms And Removal Of Arrest Powers On Agenda
GST Council Meeting Rescheduled To October 8: Arrest Powers, ITC, Registration Rules On Agenda
57th GST Council meeting to be held in Delhi today
GST Council meet: Scrapping tax officers' arrest powers, decriminalisation among reforms on agenda
GST Council meeting rescheduled to October 8: What's on the agenda
GST Council meeting rescheduled to Oct 8
GST Council Meeting Shifted To October 8, What Could Change For Taxpayers And Businesses?
GST Council meeting postponed to October 8 citing ‘unavoidable circumstances’
GST Council meeting postponed for second time, rescheduled to October 8