Union Finance Minister Nirmala Sitharaman chaired the 57th GST Council meeting with the Revenue Secretary, Minister of State for Finance, and other members. The meeting was held at Bharat Mandapam, New Delhi.
GST Council proposed the rollout of common standards for issuing notices and complying with the GST procedure norms. Beyond such reforms, the council has decided that no GST notices must be issued for the financial demands of Rs 10,000 or less.
The recommendations include the notices already issued and pending before the tax authorities. These notices, involving amounts of Rs 10,000 or less, will be withdrawn.
Notifying the decision, Finance Minister Nirmala Sitharaman stated that
“We will not be showing any notices for a monetary threshold of Rs. 10,000 or below. So equally, we will be withdrawing pending notices below the said threshold. If it was issued, it will be withdrawn.”
This decision may reduce the disputes of small tax amounts and facilitate the compliance burden on taxpayers. Tax authorities shall be supported to focus on matters that involve higher tax demands rather than pursuing minor financial disputes.
The council had proposed to eliminate the authority of a GST officer to arrest and increase the financial limit for initiating the prosecution from Rs 1 crore to Rs 5 crore. Also, there will be a reduction in the penalty to Rs 10,000 from Rs 25,000.
The council had proposed restrictions on the inspection, detention, and seizure of goods during interstate transportation. These measures shall be allowed only by the officers of the supply state or destination state.
There will be a provision for specific intelligence and authorisation from an officer of at least Joint Commissioner rank for interception.
Also Read: 57th GST Council Meet Approves Key Reforms & ITC Proposals
The Finance Minister has notified that the reforms pertinent to the process proposed by the council shall be implemented from 1st April 2027. The council did not declare any revisions to the GST rates during the meeting.
Read the Press Release of the 57th GST Council Meeting
