'Faster decisions, lower compliance costs': PM Modi welcomes new round of GST reforms

New Delhi: Prime Minister Narendra Modi on Thursday welcomed the new round of GST reforms approved by the Goods and Services Tax (GST) Council, saying the measures will enable faster decisions, lower compliance costs, automated refunds and a trust-based administration.

In a post on X, PM Modi said the Council's recommendations on removing arrest provisions, greater decriminalisation and simplifying procedures would have a "very positive impact" on taxpayers and businesses.

"I welcome the new round of GST reforms approved by the GST Council. The Council's recommendations on removal of arrest provisions, greater decriminalisation and simpler procedures will have a very positive impact," PM Modi said.


"The focus is clear: Faster decisions. Lower compliance costs. Automated refunds. Trust-based administration. These are in line with our constant efforts to make GST more efficient, transparent and citizen-friendly," he added.

The Prime Minister's remarks came after the 57th GST Council meeting, which focused primarily on process reforms aimed at simplifying compliance, reducing disputes and easing procedures for taxpayers.

Addressing a press conference after the 57th GST Council meeting, Sitharaman said, "GST Council will take it up, take rate changes only once in a year and it will come up for decision from 1st April only."

Among the major reforms, the Council recommended removing arrest powers from GST officers and raising the threshold for criminal prosecution from Rs 1 crore to Rs 5 crore.

"The council recommended removing arrest powers under GST," Sitharaman said.

The Council also recommended reducing the general penalty from Rs 25,000 to Rs 10,000 and removing minimum punishment provisions, leaving sentencing to judicial discretion.

In another relief for taxpayers, the Council recommended that notices involving amounts below Rs 10,000 should not be issued, while pending notices below the threshold would also be withdrawn.

"Equally, we will be withdrawing pending notices below the said threshold. If it was issued, it'll be withdrawn," Sitharaman said.