New Delhi Bureau.
Correction: Per the GST Council Secretariat’s order dated 5 October 2026, the 57th GST Council meeting will be held on 8 October 2026 (Thursday), 11:00 AM, at Bharat Mandapam, New Delhi — not 7 October.
In a move that could fundamentally reshape India’s indirect tax regime, the 57th GST Council meeting — scheduled for October 8 — is set to take up a sweeping reform package that scraps the power of arrest in tax cases and raises the prosecution threshold from ₹1 crore to ₹5 crore, according to an official finance ministry briefing reported by ANI on October 5.
The proposals mark the most significant process overhaul of the Goods and Services Tax since its rollout, and they are aimed squarely at one message: the honest taxpayer should not fear the tax system.
What the Reform Package Proposes
The headline proposal is the removal of arrest provisions in tax-evasion cases. Under the package, prosecution in GST cases would only begin once the alleged tax evasion crosses ₹5 crore — five times the current ₹1-crore threshold.
The package also proposes to decriminalise ten categories of offences, ease 24 penalties while retaining 11, remove minimum jail terms for certain offences, and protect the input tax credit of honest buyers. Refund processes are set to become faster as well.
Smaller Penalties, Simpler Registration
According to an ABP Live report dated September 28, the Council is also likely to consider cutting the minimum penalty from ₹25,000 to ₹10,000 and simplifying the GST registration process. The Finance Minister has said the focus of this round is only on process reforms — not on tinkering with tax rates.
Gold and Silver Imports Under the Scanner
Separately, a report published on October 5 notes a proposal to withdraw the IGST exemption currently available on the import of gold, silver and platinum by banks and nominated agencies. The move, if approved, could tighten a key route through which precious metals enter the country.
No Rate Changes Expected
Background inputs suggest that no change in tax rates is expected at this meeting — the reform push this time is entirely about simplifying procedures, reducing litigation and building trust with compliant businesses. Crucially, all of these remain proposals for now: nothing changes until the GST Council formally approves them on October 8.
Trade and industry bodies have long demanded a gentler compliance regime, arguing that the fear of arrest and harsh penalties discourages small businesses from joining the formal economy. If the Council approves the package, October 8 could be remembered as the day the GST system finally turned taxpayer-friendly.
