Story perspectives

GST Council approves reforms, raises GST offence threshold to INR5 crore

By Drooid · Oct 9, 2026, 6:47 PM UTC · How we work

Summary

Story summary

The GST Council approved a package of process reforms.
The Council eliminated GST officers’ arrest powers under Section 69, restricting arrests to other agencies.
The Council raised the criminal prosecution threshold for GST offences from Rs 1 crore to Rs 5 crore.
The Council required refund claims to be acknowledged within ten days.
It mandated releasing up to ninety percent of refunds after risk-based checks.

History

Historical Context

Facing a balance-of-payments crisis in 1991, Prime Minister P. V. Narasimha Rao appointed economist Manmohan Singh as finance minister; they secured an IMF loan, devalued the rupee and cut corporate taxes, lifting reserves from $1.2 billion to avoid default. The GST Council’s 2024 reforms—dropping Section 69 arrest powers and raising the prosecution threshold to Rs 5 crore—revive that liberalisation drive by easing tax burdens.

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Story summary

The GST Council approved a package of process reforms.
The Council eliminated GST officers’ arrest powers under Section 69, restricting arrests to other agencies.
The Council raised the criminal prosecution threshold for GST offences from Rs 1 crore to Rs 5 crore.
The Council required refund claims to be acknowledged within ten days.
It mandated releasing up to ninety percent of refunds after risk-based checks.

1 / 2