GST Council removes arrest powers and speeds up refunds

GST Council has stripped tax officers of the power to arrest under the GST law, marking a major shift in enforcement. The council also announced steps to speed up registration, input‑tax‑credit claims and other compliance tasks, aiming to cut overall compliance costs for businesses. The proposal includes simplifying the input tax credit mechanism so purchase and sale invoices can be matched faster. Registrations for new taxpayers will be handled through a single online portal to reduce waiting times. By lowering compliance costs, the council expects small traders to benefit the most. Refund processing will be fast‑tracked, with a target to settle claims within three days. Industry groups welcomed the move, saying it reduces fear of punitive actions and encourages smoother tax filing. The overall goal is to boost voluntary compliance and reduce disputes. ## Context The GST Council is the top policy body that decides on tax rates and rules for India’s Goods and Services Tax. Its arrest authority was seldom used, so its removal is largely symbolic but signals a softer approach. Faster refunds improve cash flow for small and medium enterprises, supporting the broader economy.