The 57th GST Council has decided to remove the power of tax officers to arrest individuals in certain GST-related cases and has raised the threshold for prosecution to ₹5 crore from the existing ₹1 crore, the Finance Ministry said on Thursday, according to PTI.
The council also approved simplified compliance requirements for small sellers operating through e-commerce platforms, the ministry said.
GST Council meet: Key highlights
- No changes were made to GST rates, with the Finance Ministry saying the existing rate structure has been settled.
2. “The rate structure is settled, so the Council has turned to how the tax works day to day,” the finance ministry said, noting that changes to GST rates will henceforth be made once a year.
3. The council also reduced the time available for authorities to acknowledge refund applications from 15 days to 10 days, Finance Minister Nirmala Sitharaman stated after the meeting.
4. She added employers will also be eligible to claim Input Tax Credit on GST paid towards insurance coverage provided to employees.
5. The provision prescribing a minimum punishment has been scrapped, with the decision on whether to impose a fine, imprisonment or both now left to the discretion of the court in each case, according to the council’s decision.
The general penalty applicable in cases where no specific penalty has been prescribed has also been reduced from ₹25,000 to ₹10,000, the ministry said.
(This is a developing story. More to come)