GST reforms to lower compliance costs, enable faster decisions: PM

PM Modi welcomed new GST reforms, highlighting faster decisions, lower compliance costs, and automated refunds. The GST Council's recommendations include removing arrest provisions, greater decriminalisation, and simplifying procedures for businesses.

Prime Minister Narendra Modi on Thursday welcomed the new round of GST reforms approved by the Goods and Services Tax (GST) Council, saying the measures will enable faster decisions, lower compliance costs, automated refunds and a trust-based administration.

PM Modi Welcomes 'Citizen-Friendly' Reforms

In a post on X, PM Modi said the Council’s recommendations on removing arrest provisions, greater decriminalisation and simplifying procedures would have a “very positive impact” on taxpayers and businesses.

I welcome the new round of GST reforms approved by the GST Council. The Council’s recommendations on removal of arrest provisions, greater decriminalisation and simpler procedures will have a very positive impact. The focus is clear: Faster decisions. Lower compliance costs. Automated refunds. Trust-based administration. These are in line with our constant efforts to make GST more efficient, transparent and citizen-friendly. — Narendra Modi (@narendramodi) October 8, 2026

“I welcome the new round of GST reforms approved by the GST Council. The Council’s recommendations on removal of arrest provisions, greater decriminalisation and simpler procedures will have a very positive impact,” PM Modi said.

“The focus is clear: Faster decisions. Lower compliance costs. Automated refunds. Trust-based administration. These are in line with our constant efforts to make GST more efficient, transparent and citizen-friendly,” he added.

Key Decisions of the 57th GST Council Meeting

The Prime Minister’s remarks came after the 57th GST Council meeting, which focused primarily on process reforms aimed at simplifying compliance, reducing disputes and easing procedures for taxpayers.

Addressing a press conference after the 57th GST Council meeting, Sitharaman said, "GST Council will take it up, take rate changes only once in a year and it will come up for decision from 1st April only."

Decriminalisation and Arrest Powers

Among the major reforms, the Council recommended removing arrest powers from GST officers and raising the threshold for criminal prosecution from Rs 1 crore to Rs 5 crore.

"The council recommended removing arrest powers under GST," Sitharaman said.

Penalty and Punishment Provisions

The Council also recommended reducing the general penalty from Rs 25,000 to Rs 10,000 and removing minimum punishment provisions, leaving sentencing to judicial discretion.

Relief on Small Notices

In another relief for taxpayers, the Council recommended that notices involving amounts below Rs 10,000 should not be issued, while pending notices below the threshold would also be withdrawn.

"Equally, we will be withdrawing pending notices below the said threshold. If it was issued, it'll be withdrawn," Sitharaman said.

(ANI)

(Except for the headline, this story has not been edited by Asianetnews Editorial staff and is published from a syndicated feed.)