India’s GST Council Removes Arrest Powers, Raises Prosecution Bar to ₹5 crore

The concrete rupture arrived when the council formally rescinded the power to detain GST officials, replacing it with a higher monetary trigger for prosecution. This procedural shift was recorded in the council's minutes and instantly altered the legal toolkit available to tax administrators. Underlying tension stems from long‑standing friction between the central revenue apparatus and the burgeoning e‑commerce sector, which has complained of heavyhanded raids. Lawmakers argued that the previous regime stifled legitimate trade and invited litigation. Downstream, small merchants anticipate fewer disruptions to cash flow, while the tax department must devise alternative compliance checks. Analysts forecast a modest rise in disputed assessments as the agency adapts to the new enforcement ceiling.