The GST Council is expected to consider a proposal to decriminalise offences under India’s indirect tax regime at a meeting on 7 October 2026, according to The Indian Express, which cited two unnamed people aware of the development. The report says removing arrest provisions may be part of the proposal. No Council decision, draft amendment or change to the law has been established as of 4 October 2026.
What the reported proposal could mean
The report describes a possible move to decriminalise GST offences and says removal of arrest powers may be considered. It does not identify the specific offences or statutory clauses in scope, explain possible exceptions, or provide draft legislative language. It is therefore too early to say which conduct might cease to carry criminal consequences or whether arrest powers would be removed altogether.
The immediate issue is a reported agenda item, not a change taxpayers or businesses can rely on. The Indian Express attributes the expected discussion and its possible direction to unnamed sources; the GST Council’s available meeting archive does not independently confirm the reported October 2026 meeting.
Why arrest powers are part of the debate
The report frames the proposal against business concerns that arrests can involve overreach and disrupt business activity. It also recounts the tax administration’s rationale for retaining arrest powers as an enforcement tool. The underlying policy tension is whether criminal enforcement deters serious tax wrongdoing without sweeping ordinary compliance failures into a process that can cause disproportionate harm.
Free tools Windows power users keep installed
One-click scans. No signup required.
The report does not settle how a proposal would distinguish ordinary non-compliance from serious fraud or fake invoicing. Nor does it establish what alternative enforcement tools might be retained if some offences or arrest provisions were changed.
A Council discussion would not itself change the law
The GST Council is a constitutional body that recommends measures on GST implementation. Its recommendations and deliberations must be distinguished from statutory amendments: the contemporary report says legislative changes would follow if the Council approves a proposal. Until the relevant law is amended through the required process, the reported discussion alone does not establish that offences or arrest powers have been removed.
The Council’s institutional description explains its role and decision framework. For the reported October proposal, the available account does not identify an official agenda, draft bill, notification or effective date.
What the 49th Council meeting tells us—and what it does not
There is precedent for Council discussion of changes to prosecution and compounding under the CGST Act. At its 49th meeting in 2023, the Council considered Law Committee proposals that included excluding specified offences from prosecution, raising the monetary prosecution threshold from ₹1 crore to ₹2 crore, and changing compounding amounts. State representatives raised objections, including concerns about revenue and bill trading, and the Council record says the issue was deliberated.
Quick wins for a faster PC:
Scan for outdated or missing drivers - takes under a minuteDriver Scan →Repair Windows errors before they cause bigger problemsFix Now →The minutes also record the Tamil Nadu representative’s figures: 471 cases below ₹1 crore with ₹222 crore in revenue implications; and, if the threshold were raised to ₹2 crore, 241 cases that could be prosecuted with ₹350 crore in revenue implications. These are figures presented by that state representative at the 49th meeting, not national totals or independently validated estimates.
That 2023 record shows an earlier debate about prosecution and thresholds. It does not establish the terms of the proposal reportedly due for discussion in October 2026, or predict the Council’s decision. The 49th-meeting agenda and minutes are the primary record for the earlier deliberation.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What taxpayers and businesses should watch next
The practical questions will depend on any official proposal and subsequent legal text. Readers should look for confirmation of the meeting and its outcome, then check the scope and timing of any statutory amendment rather than assuming a Council discussion has immediate effect.
- Whether the Council considered the issue and made a recommendation.
- Which offences, prosecution thresholds or arrest provisions are covered, including any exceptions.
- Whether a bill or other required amendment has been enacted, and when it takes effect.
- How the final rules distinguish routine non-compliance from serious fraud or fake invoicing.
The Council meeting archive lists meetings through the 55th meeting in December 2024; it does not independently confirm the reported October 2026 meeting. The current meeting plan and possible scope remain based on The Indian Express’s account of unnamed sources, not an official record.
Do these 3 things before closing this tab:
1Repair Windows errors before they cause bigger problems2Fix the driver behind crashes, sound loss and screen glitches3Clear out junk files and repair common Windows errorsQuick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
