Context
The GST Council, at its October 8, 2026 meeting, approved procedural reforms to make GST administration more business-friendly. Key measures include removing tax officers’ pre-prosecution arrest powers, introducing a ₹10,000 minimum threshold for show-cause notices and tightening conditions for intercepting goods transported across states.
Explanation
- Goods and Services Tax (GST) is a destination-based indirect tax introduced on 1 July 2017, replacing several Central and State indirect taxes.
- Under Article 279A, the GST Council is a constitutional body chaired by the Union Finance Minister.
- It recommends GST rates, exemptions and administrative reforms to the Union and States.
- Under the CGST Act, 2017, tax officers have powers relating to inspection, search, seizure and arrest in specified cases.
- Pre-prosecution arrest means arresting an accused person before criminal prosecution begins.
- A show-cause notice (SCN) asks a taxpayer to explain an alleged violation before authorities take action.
- E-way bills are electronic documents used to track the movement of goods, generally for consignments exceeding ₹50,000.
- The reforms aim to reduce unnecessary enforcement, improve ease of doing business and promote taxpayer trust.
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