{"id":1401,"date":"2026-10-10T06:40:14","date_gmt":"2026-10-10T06:40:14","guid":{"rendered":"https:\/\/www.mylegalbusiness.com\/blog\/?p=1401"},"modified":"2026-10-10T07:08:49","modified_gmt":"2026-10-10T07:08:49","slug":"gst-council-raises-prosecution-limit-to-five-crore","status":"publish","type":"post","link":"https:\/\/www.mylegalbusiness.com\/blog\/gst-council-raises-prosecution-limit-to-five-crore\/","title":{"rendered":"GST Council Scraps Arrest Powers, Raises Prosecution Limit to \u20b95 Crore"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">The GST Council has proposed significant changes to the country\u2019s GST enforcement rules. In its 57th meeting on 8 October 2026, the Council recommended removal of the arrest provision under GST and raising the threshold for prosecution from Rs 1 crore to Rs 5 crore.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For business owners, these changes could reduce the risk of criminal prosecution in some tax matters. But that does not relieve you of the obligation to pay GST or follow tax rules. When a taxpayer breaks the law, interest, tax recovery and penalties may be applied.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The changes also give courts more leeway to decide on punishment in cases that result in conviction. GST Council arrest powers decision: What it means for companies, taxpayers and professionals<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/gst-council-raises-prosecution-limit-to-five-crore\/#Whats_the_latest_on_GST_council_arrest_powers\" >What&#8217;s the latest on GST council arrest powers?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/gst-council-raises-prosecution-limit-to-five-crore\/#Why_has_the_GST_Council_removed_arrest_powers\" >Why has the GST Council removed arrest powers?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/gst-council-raises-prosecution-limit-to-five-crore\/#GST_prosecution_threshold_increased_from_%E2%82%B91_crore_to_%E2%82%B95_crore\" >GST prosecution threshold increased from \u20b91 crore to \u20b95 crore<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/gst-council-raises-prosecution-limit-to-five-crore\/#What_does_the_%E2%82%B95_crore_limit_mean\" >What does the \u20b95 crore limit mean?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/gst-council-raises-prosecution-limit-to-five-crore\/#How_will_the_GST_Council_arrest_powers_decision_affect_businesses\" >How will the GST Council arrest powers decision affect businesses?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/gst-council-raises-prosecution-limit-to-five-crore\/#1_Reduced_risk_of_GST_arrest\" >1. Reduced risk of GST arrest<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/gst-council-raises-prosecution-limit-to-five-crore\/#2_Higher_threshold_for_criminal_prosecution\" >2. Higher threshold for criminal prosecution<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/gst-council-raises-prosecution-limit-to-five-crore\/#3_More_discretion_in_punishment\" >3. More discretion in punishment.<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/gst-council-raises-prosecution-limit-to-five-crore\/#4_You_still_need_to_comply_with_taxes\" >4. You still need to comply with taxes<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/gst-council-raises-prosecution-limit-to-five-crore\/#Does_the_new_GST_rule_mean_taxpayers_cannot_face_prosecution\" >Does the new GST rule mean taxpayers cannot face prosecution?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/gst-council-raises-prosecution-limit-to-five-crore\/#What_other_GST_changes_were_announced\" >What other GST changes were announced?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/gst-council-raises-prosecution-limit-to-five-crore\/#What_should_businesses_do_after_the_GST_Council_decision\" >What should businesses do after the GST Council decision?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/gst-council-raises-prosecution-limit-to-five-crore\/#Conclusion\" >Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/gst-council-raises-prosecution-limit-to-five-crore\/#FAQS\" >FAQS<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/gst-council-raises-prosecution-limit-to-five-crore\/#1_Has_the_GST_Council_taken_away_the_arrest_powers_of_tax_officers\" >1. Has the GST Council taken away the arrest powers of tax officers?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/gst-council-raises-prosecution-limit-to-five-crore\/#2_What_is_the_new_limit_of_prosecution_in_GST\" >2. What is the new limit of prosecution in GST?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/gst-council-raises-prosecution-limit-to-five-crore\/#3_Can_GST_officers_issue_notices_after_the_change\" >3. Can GST officers issue notices after the change?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/gst-council-raises-prosecution-limit-to-five-crore\/#4_Will_businesses_still_be_liable_to_pay_GST_penalties\" >4. Will businesses still be liable to pay GST penalties?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/gst-council-raises-prosecution-limit-to-five-crore\/#5_Did_there_any_change_in_GST_rates_after_last_Council_meeting\" >5. Did there any change in GST rates after last Council meeting?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Whats_the_latest_on_GST_council_arrest_powers\"><\/span><a><\/a>What&#8217;s the latest on GST council arrest powers?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The GST Council has proposed changes to the arrest and prosecution provisions under the Central Goods and Services Tax (CGST) Act, 2017. The goal is to limit the use of criminal penalties for tax offences, but not to prevent action against serious fraud and evasion.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The major changes are:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Removal of arrest provisions under GST.<\/li>\n\n\n\n<li>Increasing the prosecution threshold limit from \u20b91 crore to \u20b95 crore.<\/li>\n\n\n\n<li>Amendments to certain offences under Section 132 of CGST Act.<\/li>\n\n\n\n<li>Abolition of the mandatory minimum six month term of imprisonment.<\/li>\n\n\n\n<li>Courts to have more discretion to decide whether to impose a fine, prison term or both.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">These are the Council\u2019s proposed changes to the law. \u201cBusinesses should check the relevant notifications and commencement dates before relying on them in a tax dispute.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_has_the_GST_Council_removed_arrest_powers\"><\/span><a><\/a>Why has the GST Council removed arrest powers?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">GST officers have the power to arrest people in certain situations where there are serious offences committed under GST law. \u2018Businesses have expressed concerns over the use of these powers in tax investigations and disputes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The decision of the GST Council seeks to delink tax recovery with criminal prosecution. A failure to pay tax or a tax dispute should not be treated as a criminal offence.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, the lack of <strong>arrest powers<\/strong> does not mean that tax authorities have no power to investigate suspected fraud, determine tax liabilities or collect outstanding dues. Enforcement may be taken by the authorities under applicable law.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The change is designed to give businesses greater confidence, while not ruling out legal action in serious cases.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"GST_prosecution_threshold_increased_from_%E2%82%B91_crore_to_%E2%82%B95_crore\"><\/span><a><\/a>GST prosecution threshold increased from \u20b91 crore to \u20b95 crore<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">One of the main changes concerns the amount of tax evasion that can lead to prosecution.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Under the existing framework, the prosecution threshold for relevant offences was \u20b91 crore. The Council has recommended raising it to \u20b95 crore.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Particulars<\/strong><\/td><td><strong>Earlier position<\/strong><\/td><td><strong>Recommended change<\/strong><\/td><\/tr><tr><td>Prosecution threshold<\/td><td>\u20b91 crore<\/td><td>\u20b95 crore<\/td><\/tr><tr><td>Arrest provisions<\/td><td>Available under specified conditions<\/td><td>Removal recommended<\/td><\/tr><tr><td>Minimum imprisonment<\/td><td>Six months in specified cases<\/td><td>Mandatory minimum to be removed<\/td><\/tr><tr><td>Court&#8217;s choice of punishment<\/td><td>Subject to existing statutory rules<\/td><td>Fine, imprisonment or both<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_does_the_%E2%82%B95_crore_limit_mean\"><\/span><a><\/a>What does the \u20b95 crore limit mean?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A higher threshold level indicates that any amount above \u20b95 crore in respect of an offense can be prosecuted as per the provisions of recommendation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, a case involving the allegation of tax evasion of \u20b93 crore would be below the threshold. But this does not imply that the person making the tax payment has got away with any consequences. There would be tax recovery, interest and even penalties applicable.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Should the amount cross \u20b95 crore, then there may be a possibility of prosecution depending upon the offense and the law.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The threshold level does not make every tax issue a criminal matter.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_will_the_GST_Council_arrest_powers_decision_affect_businesses\"><\/span><a><\/a>How will the GST Council arrest powers decision affect businesses?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The changes could be a relief for businesses under GST investigation, particularly where a dispute is over the quantum of tax involved or classification of an offence.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_Reduced_risk_of_GST_arrest\"><\/span><a><\/a>1. Reduced risk of GST arrest<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The proposed removal of arrest provisions would prevent GST officers from using arrest as an enforcement tool under the GST law. This may ease fears of arrest during investigations.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Higher_threshold_for_criminal_prosecution\"><\/span><a><\/a>2. Higher threshold for criminal prosecution<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The increase in the threshold to \u20b95 crore may reduce the number of cases attracting provisions for prosecution. Businesses must still pay the tax that is due and respond to notices.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_More_discretion_in_punishment\"><\/span><a><\/a>3. More discretion in punishment.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The Council has suggested that the mandatory minimum six-month jail term should be abolished. The courts would have more discretion to impose a fine, imprisonment or both depending on the law and facts of each case.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_You_still_need_to_comply_with_taxes\"><\/span><a><\/a>4. You still need to comply with taxes<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Businesses will still need to file their <a href=\"https:\/\/www.mylegalbusiness.com\/gst-return-filing.php\"><strong>GST returns<\/strong><\/a>, report transactions correctly and keep invoices and accounts. A lesser risk of criminal prosecution does not protect a business from demands for tax or penalties.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Does_the_new_GST_rule_mean_taxpayers_cannot_face_prosecution\"><\/span><a><\/a>Does the new GST rule mean taxpayers cannot face prosecution?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">No. The raising of the threshold for prosecution is a separate change from the removal of arrest provisions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Council has recommended to do away with the arrest provisions under GST. However, subject to the requirements of the law, where the amount involved is more than \u20b95 crore, prosecution may be initiated before a competent court for relevant offences.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For instance, a company under investigation for serious tax evasion charges of more than \u20b95 crore could still be prosecuted. The law would have to be met and the court would have to make a determination.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The change should not be an excuse for business to avoid tax or to file false returns.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_other_GST_changes_were_announced\"><\/span><a><\/a>What other GST changes were announced?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">In the <strong>57th GST Council meeting,<\/strong> other compliance measures were also discussed.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Lower general penalty: It was suggested to lower the maximum general penalty from \u20b925,000 to \u20b910,000.<\/li>\n\n\n\n<li>Faster refunds: The Council recommended system-based processing to enable faster GST refunds to eligible claimants.<\/li>\n\n\n\n<li>Small e-commerce sellers: The Council approved simplified registration norms for small sellers using e-commerce platforms.<\/li>\n\n\n\n<li>No change in GST rates: The meeting did not alter the existing GST rate structure.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">These changes relate to different aspects of GST administration. Each measure should be looked at individually, as conditions and implementation dates may differ.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_should_businesses_do_after_the_GST_Council_decision\"><\/span><a><\/a>What should businesses do after the GST Council decision?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Companies need to ensure that their records for GST are updated and their obligations fulfilled.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Here are some tips:<\/strong><\/p>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li>Go through the outstanding notices issued for GST and determine the tax period and matter at hand.<\/li>\n\n\n\n<li>Have your invoices, returns, payments, and input tax credit claims at hand.<\/li>\n\n\n\n<li>Act according to the notice within the deadline mentioned.<\/li>\n\n\n\n<li>Look for official notifications for the time when the recommendation will come into force.<\/li>\n\n\n\n<li>Consult a competent tax advisor in case of any inquiry or prosecution.<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">Just because the council has recommended changes in the law regarding arrest and prosecution, you cannot simply ignore the notice.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><a><\/a>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">GST Council decision on <strong>arrest powers<\/strong>: Recommends abolishing arrest powers under GST, raising prosecution threshold from \u20b91 crore to \u20b95 crore. It would also provide judges with more flexibility in sentencing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These changes may reduce the risk of criminal prosecution in some cases but tax recovery, interest and applicable penalties may be applied. Businesses should continue to comply with GST regulations and determine the legal position before acting on the recommendations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.mylegalbusiness.com\/\"><strong>MY LEGAL BUSINESS LLP<\/strong><\/a> offers professional assistance for GST compliance, business documentation or tax notices.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQS\"><\/span><a><\/a>FAQS<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_Has_the_GST_Council_taken_away_the_arrest_powers_of_tax_officers\"><\/span><a><\/a>1. Has the GST Council taken away the arrest powers of tax officers?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">GST council suggests doing away with arrest provisions under GST. The change will come into force in accordance with the relevant amendments and their commencement dates.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_What_is_the_new_limit_of_prosecution_in_GST\"><\/span><a><\/a>2. What is the new limit of prosecution in GST?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">GST Council recommends raising threshold for prosecution from Rs 1 crore to Rs 5 crore for relevant offences If the value exceeds \u20b95 crore and the legal requirements are met, prosecution is still possible.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Can_GST_officers_issue_notices_after_the_change\"><\/span><a><\/a>3. Can GST officers issue notices after the change?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Yes. The proposed removal of arrest provisions does not bar tax authorities from investigating the cases, issuing lawful notices and recovering the unpaid GST. Taxpayers must still respond to notices within the time prescribed.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_Will_businesses_still_be_liable_to_pay_GST_penalties\"><\/span><a><\/a>4. Will businesses still be liable to pay GST penalties?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Yes. The proposed changes do not remove all GST liabilities and penalties. Even if the businesses do not comply with the GST rules, they will have to pay the outstanding tax, interest and applicable penalties.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_Did_there_any_change_in_GST_rates_after_last_Council_meeting\"><\/span><a><\/a>5. Did there any change in GST rates after last Council meeting?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The 57th meeting of the GST Council on 8 October 2026 maintained the status unchanged on the rate structure as per the meeting summary used for this article.<\/p>\n\n\n\n<blockquote style=\"background-image:var(--wp--preset--gradient--pale-ocean);\" class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow has-background\">\n<p class=\"wp-block-paragraph\"><strong>ALSO READ<\/strong><\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.mylegalbusiness.com\/blog\/gst-council-meeting-2025\/\"><strong>56th GST Council Meeting 2025<\/strong><\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.mylegalbusiness.com\/blog\/top-10-common-mistakes-during-gst-filing\/\"><strong>Top 10 Common Mistakes Businesses Make During GST Filing<\/strong><\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.mylegalbusiness.com\/blog\/step-by-step-process-of-gst-registration\/\"><strong>Step-by-step Process of GST Registration<\/strong><\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.mylegalbusiness.com\/blog\/gem-portal-registration\/\"><strong>GeM Portal Registration in 2026<\/strong><\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.mylegalbusiness.com\/ngo-darpan-registration.php\"><strong>NGO Darpan Registration<\/strong><\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.mylegalbusiness.com\/section-8-company-registration.php\"><strong>Section 8 Company Registration<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The GST Council has proposed significant changes to the country\u2019s GST enforcement rules. In its 57th meeting on 8 October 2026, the [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":1402,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[],"class_list":["post-1401","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst-registration"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>GST Council Scraps Arrest Powers, Raises Prosecution Limit to \u20b95 Crore<\/title>\n<meta name=\"description\" content=\"GST Council arrest powers have been removed, and the prosecution limit has risen to \u20b95 crore. 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