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GST Council clears process reforms from 1 April 2027, lifting the prosecution threshold to Rs 5 crore
The GST Council will also withdraw arrest powers under GST, with the prosecution threshold rising from Rs 1 crore. Input tax credit widens for restaurants and hotel stays, and small consumer-facing taxpayers get an optional annual filing scheme.
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The numbers
Figures from Financial Express,
| General penalty reduced to: | Rs 10,000 |
|---|---|
| Refund acknowledgement deadline: | 10 days |
| Refund claims sanctioned by system: | 90% |
| Taxpayers who could benefit from scheme: | 1.66 million |
Why it matters to operators and investors
From 1 April 2027, restaurant and hotel-stay input tax credit widens, and consumer-facing outlets with turnover up to Rs 5 crore can opt for annual filing, so start working out your credit claims and which filing route suits you.