NEW DELHI — India’s Goods and Services Tax (GST) Council is set to consider a proposal to remove the GST-specific arrest powers of tax officials at its 57th meeting on October 7, according to reports. The proposal has not yet been approved, and the existing arrest provisions under the GST law remain in force.
The move is part of a wider effort to simplify the criminal provisions of the GST framework and limit the use of arrest powers in tax-related cases. Under the current law, authorised GST officers can arrest a person in certain cases involving serious tax offences, including evasion and fraudulent claims, subject to the conditions prescribed under the law.
The proposal follows discussions on whether arrest powers available to GST authorities should continue in their present form. Government data show that Central GST authorities handled 72,393 cases involving tax offences between 2021-22 and 2024-25, during which 887 arrests were made. The proposed change is aimed at making enforcement more proportionate to the nature and seriousness of tax offences, according to reports.
If the GST Council agrees to remove the arrest provisions, the change would still require amendments to the GST law. The government could then introduce the necessary legislation in Parliament, with the Winter Session being considered as a possible timeframe. Until any such amendment is passed and comes into effect, GST officers will continue to exercise their existing statutory powers.
The proposal does not mean that serious tax fraud would cease to be a criminal offence. The government is considering changes specifically to the powers available to GST authorities under the GST framework, while other criminal and legal provisions would continue to apply where relevant.
The key question before the GST Council will be whether GST officials should lose their arrest powers completely or whether a narrower framework should be retained for specific cases. The final decision will depend on the Council’s deliberations on October 7 and any subsequent legislative action by Parliament.
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