NEWS: The 57th GST Council meeting recommended measures to simplify GST compliance, reduce litigation + ease the burden on small businesses, effective from 1 April 2027 as reported.

ABOUT GST COUNCIL

• Constitutional body under Article 279A.
• Chaired by the Union Finance Minister.
• Recommends GST rates, exemptions, model laws + administrative reforms.

KEY REFORMS

• Arrest powers → proposed removal of arrest powers of GST officers, as reported.
• Prosecution threshold → proposed increase from ₹1 crore to ₹5 crore, according to the source.
• General penalty → proposed reduction from ₹25,000 to ₹10,000.
• Automated registration → less paperwork + faster registration.
• Input Tax Credit (ITC) → proposed simplification of credit procedures.
• Export of services → reported changes to ITC treatment.

SIGNIFICANCE

• ↓ Compliance costs + litigation.
• ↑ Tax certainty + ease of doing business.
• Relief for small taxpayers and businesses.
• More transparent + efficient GST administration