57th GST Council Meeting: Revocation of Arrest Powers of GST Officers

In the 57th GST Council meeting held in Delhi under the chairmanship of Union Finance Minister Nirmala Sitharaman, the power of GST officers to directly arrest for tax evasion and delays has been revoked.

The threshold for initiating prosecution related to GST has been increased from Rs.1 crore to Rs.5 crore, and the general penalty has been reduced from Rs.25,000 to Rs.10,000; these reforms come into effect from April 1, 2027.

📚 School Textbook Link: 11th Standard / 12th Standard · Economics · 12th Economics: Unit 9 (Financial Economics) / 11th Economics: Indian Economy · Goods and Services Tax (GST), GST Council & Indirect Tax Reforms

🎯 TNPSC Exam Key Points:

• 57th GST Council Meeting: Held in Delhi under the chairmanship of Union Finance Minister Nirmala Sitharaman.
• Increase in Prosecution Limit: The tax evasion limit for initiating criminal prosecution has been increased from Rs.1 crore to Rs.5 crore.
• Penalty Reduction: The general GST penalty amount has been reduced from Rs.25,000 to Rs.10,000.
• Single Window Assessment System: Introduction of single window online assessment for Central GST (CGST) taxpayers registered in multiple states in the financial year 2027-28.
• Constitutional Article 279A: Tax sharing and rules for Central-State governments are determined based on GST Council recommendations.

📌 KEY FOR TNPSC:

• Article 279A: GST Council & 101st Constitutional Amendment Act, 2016.
• Approval to increase GST prosecution threshold from Rs.1 crore to Rs.5 crore.