PM Modi Welcomes New Round of GST Reforms
GST Council approves curbs on arrest powers, raises prosecution threshold to Rs 5 crore and reduces the general penalty to Rs 10,000.
NEW DELHI, Oct 8: Prime Minister Narendra Modi on Thursday welcomed the latest Goods and Services Tax (GST) reforms approved by the GST Council, highlighting the government’s focus on faster decision making, reduced compliance costs and automated refunds.
Modi said the Council’s recommendations on removing arrest provisions, expanding decriminalisation and simplifying procedures would have a positive impact on taxpayers and businesses.
The GST Council, at its 57th meeting on Thursday, approved measures to limit the arrest powers of tax officials and increase the prosecution threshold fivefold to Rs 5 crore. It also cleared provisions for faster refunds, with greater automation aimed at making the tax administration more efficient.
“I welcome the new round of GST reforms approved by the GST Council,” Modi said in a post on X.
He added that the measures prioritise quicker decisions, lower compliance costs, automated refunds and a trust-based administrative system.
The prime minister said the changes reflect the government’s continued efforts to make GST more efficient, transparent and citizen-friendly.
Finance Minister Nirmala Sitharaman announced the decisions following the Council meeting. Among the key measures, the general penalty has been reduced from Rs 25,000 to Rs 10,000, providing relief to taxpayers.
The reforms aim to simplify tax compliance, reduce procedural difficulties and promote a more taxpayer-friendly GST framework.
