Policy● Neutral for Indian equities
GST 2.0 may replace arrests with fines for tax defaulters
The brief
- GST 2.0 may replace arrests with fines for tax defaulters
- The next reform phase follows revenue stabilisation after last year’s rate rationalisation
- Any shift in GST penalties could affect compliance risks for Indian businesses
- India’s GST revenue growth has lost momentum: What the post-2025 data shows
- GST collections may look stronger than they are: What rate re-labelling is hiding
- Andhra Pradesh commercial tax collections rise 18 pc to Rs 30,436 cr in H1
- Strong macro show takes shape in Q2 before festive rush
- GST collections remain strong, but faster import growth needs watching: Tax experts
Proposed changes to GST enforcement
Proposals under consideration include removing GST officials’ arrest powers, requiring court orders for arrests and setting a ₹5 crore prosecution threshold. The changes are part of a second phase of GST reform, alongside faster refunds and wider input tax credit.
Monday, 5 October
- GST 2.0 may replace arrests with fines for tax defaulters