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GST Council clears process reforms from 1 April 2027, lifting the prosecution threshold to Rs 5 crore

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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.

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The report,

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.

GST prosecution threshold rises from ₹1 crore to ₹5 crore from 1 April 2027
Prosecution threshold, earlier₹1 crore
Prosecution threshold, from 1 April 2027₹5 crore

Reported figures

From the report. Source details below

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

The source

Source Read the source at Financial Express

Published

Also reported by Entrackr, Times of India

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