Suryaa Business Desk: The Confederation of Indian Industry (CII) has expressed support for the GST Council's decisions to remove minor tax violations from the list of criminal offenses and rationalize the investigative powers of GST officials. CII Director General Chandrajit Banerjee described these changes as a step toward trustworthy governance and cooperative federalism. He noted that these measures provide legal protection and reduce business uncertainty for Micro, Small, and Medium Enterprises (MSMEs) and new-age entrepreneurs.
Following the 57th GST Council meeting held on October 8, a consensus between central and state governments led to the recommendation to repeal Section 69 of the CGST Act, which removes arrest powers from officials. Additionally, the prosecution threshold has been increased fivefold, from ₹1 crore to ₹5 crore. The council also proposed limiting specific offenses under Section 132, granting discretionary powers to courts, and removing mandatory six-month prison sentences in favor of penalties.
CII stated that these reforms create a clear distinction between procedural errors or business disputes and intentional fraud. Banerjee emphasized that trustworthy governance involves implementing regulations in a comprehensive, impartial, and transparent manner. He further advised business organizations to strengthen voluntary tax compliance and internal controls in alignment with these government decisions.