Politics · India · 6 hrs ago
Centre and states to set rules for ongoing GST arrest cases
The Centre and state governments will work on common rules for cases involving arrests under the goods and services tax, or GST, that are already under way.
The rules are meant to ensure cases are handled consistently across the country.
The GST Council has recommended removing a law section that allows arrests in specified cases and raising the threshold for prosecution from ₹1 crore to ₹5 crore.
These are proposed changes, and the government says implementing them will require amendments to rules and laws, some needing Parliament’s approval.
The Centre and states will also review the risk assessment used for GST refunds every three months.
The government says this is intended to keep refunds consistent, including a policy to allow businesses to receive 90% of refunds and input tax credits based on risk assessment.
It also plans to make invoice management mandatory from April 1, 2027, with a digital system designed to reduce human error.
The Centre will work with states to draft a standard operating procedure for existing GST arrest cases.
The procedure is intended to bring uniformity to how the Centre and states handle those cases.
The GST Council recommended removing the CGST Act section that provides for arrests in specified cases and raising the prosecution threshold from ₹1 crore to ₹5 crore.
The government plans to make the invoice management system mandatory from April 1, 2027.
The Centre and states will review GST refund risk assessments every quarter.
- Who
- The Centre and state governments.
- What
- They will draft a standard operating procedure for existing GST arrest cases.
- When
- The date for the procedure is not stated; the invoice management system is planned to become mandatory from April 1, 2027.
- Where
- India.
- Why
- To ensure uniform treatment of existing cases and align enforcement with proposed GST decriminalisation measures.
This story does not have two clearly opposing sides.
The Council announced proposed decriminalisation measures and recommended removing Section 69 of the CGST Act.
The Centre said it would work with states on a standard operating procedure for existing arrest cases.
The government plans to make the invoice management system mandatory.
- Prosecution threshold
- Proposed increase from ₹1 crore to ₹5 crore
- Arrest provision
- The GST Council recommended removing Section 69 of the CGST Act
- Invoice management system
- Planned mandatory start date: April 1, 2027
- Refund review
- Quarterly review with states
- Refunds and input tax credits
- The Centre plans to allow 90% on the basis of risk assessment
What people are saying
The Council has clearly said that tax officers will not have the power of arrest. However, we have to coordinate with the states on ongoing cases to ensure continuity and uniformity in treatment
We are still working on the SOP as it requires more discussion
We will have a quarterly review of refund risk assessment with states every three months to ensure that the refund process remains responsive and consistent across jurisdictions
Sources
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