India eases punitive rules under GST regime

Union Finance Minister Nirmala Sitharaman, Jammu and Kashmir Chief Minister Omar Abdullah, Karnataka Chief Minister DK Shivakumar during the 57th Goods and Services Tax Council Meeting at Bharat Mandapam, in New Delhi. (Photo: ANI)

New Delhi, Oct 8 (PTI) MUMBAI, Oct 8 (Reuters) – India’s Goods and Services Tax Council, a body of federal ​and state government officials, made a ‌series of changes to rules on Thursday, limiting punitive powers of tax officials in ​cases of GST offences.

Businesses across India ​have complained about stringent tax practices ⁠and sought better ease of doing ​business.

Here are the details of the outcomes ​from the GST Council meeting, according to a government release.

  • The power of arrest is being ​removed from GST
  • The threshold for prosecution ​for GST offences has been raised to 50 ‌million ⁠rupees ($516,635) from 10 million rupees
  • The general penalty has been reduced to 10,000 rupees from 25,000 rupees
  • A taxpayer who files ​late, makes ​an error ⁠or delays payment will face recovery, interest and a ​proportionate penalty, but nothing beyond that
  • No ​GST ⁠rates were changed
  • GST rate matters will be taken up once a year, at ⁠a ​meeting called for the ​purpose

($1 = 96.7800 Indian rupees)

T.K.B. Sen

Journalist, media worker, reporter and analyst

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