ET Government reports GST Council raises prosecution threshold to 5 crore rupees
What happened
At its 2026 meeting, the GST Council raised the prosecution threshold to ₹5 crore and eliminated tax officers' powers of arrest. The Council also finalized new regulations for small e-commerce sellers and initiatives to streamline tax registration, confirming that no tax rate adjustments were made.
Why it matters
The policy shift provides significant legal relief for businesses by narrowing the criteria for criminal prosecution and reducing the threat of arrest, potentially lowering the compliance burden and legal risk exposure for firms operating within the GST framework.
Bigger picture
These regulatory changes signal an institutional shift toward a less punitive enforcement environment. By easing friction for small e-commerce sellers, the Council is prioritizing administrative simplification over aggressive enforcement tactics.
Watch next
Monitor the formal notification and implementation timeline for the new e-commerce seller regulations and tax registration protocols.