GST arrest powers may be removed? Council to discuss decriminalisation on Wednesday; law change likely in Winter Session
Mint 1 hr ago·4 Oct 2026, 12:48 pm
The Union GST Council will meet on Wednesday to consider a proposal that would strip the GST law of its arrest provisions, moving the offence from a criminal to a civil matter. The change is being discussed after several state and central authorities raised concerns that the power to arrest businesses over GST defaults has been used excessively.
For investors, the shift could lower the regulatory risk for companies that operate across states, as disputes would likely be settled through fines or penalties rather than detention. A less punitive environment may improve cash flow and reduce the cost of compliance, especially for firms with complex supply chains.
Market participants should keep an eye on the council’s decision and any subsequent amendment that may be introduced in the upcoming Winter Session of Parliament. Updates on the final wording of the law and guidance from tax authorities will indicate how quickly the new regime will be implemented.
Excerpt from Mint
GST enforcement could see a major shift as the Centre and states weigh changes to arrest powers under the indirect tax regime. The proposal comes amid concerns over how these provisions have been used against businesses. Here’s what could change and what it means. Indian government is considering a change to the…Read the original at Mint
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