GST Council 57th meeting: arrest powers removed, prosecution limit ₹5 crore
Why in the news
The 57th GST Council meeting took place in New Delhi on 8 October 2026 under Union Finance Minister Nirmala Sitharaman. It left tax rates untouched and focused on process and compliance reforms. The meeting had been moved from Wednesday to Thursday.
Key facts
- Rates: No change. Future rate revisions will be considered once a year, taking effect from 1 April.
- Arrest powers: The Council recommended withdrawing the power of GST officers to arrest. Prosecution remains possible where criminality exists.
- Minimum punishment: Provisions to be dropped, leaving sentencing to the courts.
- Notices: None to be issued for amounts below ₹10,000; pending notices under this limit to be withdrawn.
- Refunds: Acknowledgement time cut from 15 to 10 days; 90% of eligible claims to be sanctioned automatically after risk assessment.
- Refund eligibility widened: to credits on input services availed from 1 November 2026, and to eligible plant and machinery credits from 1 April 2027.
- ITC widened: to employee health and life insurance, telecom towers and pipelines laid outside factories.
- B2C scheme: In-principle nod to an optional scheme for taxpayers with turnover up to ₹5 crore supplying only to consumers (annual return, quarterly tax payment).
- Protection of genuine buyers’ ITC against supplier defaults was referred to an officers’ committee.
| Item | Earlier | Now |
|---|---|---|
| Prosecution threshold | ₹1 crore | ₹5 crore |
| General penalty | ₹25,000 | ₹10,000 |
| Refund acknowledgement | 15 days | 10 days |
About the GST Council
The GST Council is the joint Centre-State body that recommends GST rates and rules. The Union Finance Minister chairs it, and state and UT finance ministers are members. The meeting came about a year after India moved to a two-rate GST structure.
Exam angle
- Chair of GST Council: Union Finance Minister.
- Remember the numbers: ₹5 crore prosecution threshold, ₹10,000 penalty and notice limit, 90% automated refunds.
- Annual rate review effective 1 April; process reforms from 1 April 2027.