GST Council makes no rate changes, to review rates separately once a year

The GST Council made no changes to tax rates at its latest meeting on Thursday, with the finance ministry saying the existing rate structure was now settled.

Addressing a press conference after the meeting, Finance Minister Nirmala Sitharaman said the meeting focussed entirely on process reforms that would help businesses and taxpayers.

"Absolutely nothing to do with the rate being taken up," she said.

"Last year we had simplified the GST rates. This time we are talking about only the processes which will help the businesses and also help the tax assessees," she said.

The 57th meeting of the GST Council decided that GST rate-related matters would be taken up once a year at a meeting set aside exclusively for the purpose.

The Council meeting also raised the threshold for prosecution from ₹1 crore to ₹5 crore and reduced the general penalty for offences where no specific penalty is prescribed to ₹10,000 from ₹25,000.

Under the existing GST law, officers can arrest a person, with prior authorisation from a Commissioner-level officer, in cases involving major offences where tax evasion, fraudulent input tax credit or wrongful refunds exceed ₹1 crore.

The power of arrest will now be removed, Sitharaman said while briefing reporters on the outcome of the meeting.

The Council also recommended new rules for inspection, detention and seizure of goods to facilitate smoother movement of goods.

Goods can be inspected, detained or seized only by an officer of the supplier state or the destination state, Sitharaman said.

Goods can be intercepted only on the basis of specific intelligence and with the authorisation of at least a joint commissioner-level officer, she said.

All the process reforms agreed upon at the meeting will be implemented from April 1, 2027.