During the 57th GST Council meeting on Thursday, Union Finance Minister Nirmala Sitharaman said that the Council recommended several measures to make the movement of goods smoother while tightening checks
against irregularities.
The Council recommended that goods should be inspected, detained or seized only by an officer from the supplier state or the destination state, Sitharaman said.
She added that goods should be intercepted only when there is specific intelligence and with authorisation from an officer of at least the Joint Commissioner level.
What Did The GST Council Recommend?
The measures are aimed at reducing unnecessary checks and making the movement of goods easier across states. Under the recommendation, officials from states that are not directly linked to the movement of goods would not be able to carry out such inspections.
The Council also recommended that goods should be intercepted only on the basis of specific intelligence and after approval from a senior tax officer.
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Earlier, a vehicle carrying goods could be stopped by GST officers along its route, potentially leaving the consignment and the vehicle stranded in transit while checks were carried out. The new system limits such physical intervention to the source and destination points.
For instance, a consignment travelling across five states could earlier be checked in each of those states. Under the new framework, it can be physically checked only at the origin and destination, the GST Council said.
Prosecution Threshold Raised
Another major recommendation is an increase in the threshold for prosecution in GST cases.
The Council recommended raising the prosecution threshold from Rs 1 crore to Rs 5 crore. Sitharaman said cases involving an amount below Rs 5 crore would not face prosecution under the proposed framework.
The Council also recommended reducing the general penalty from Rs 25,000 to Rs 10,000.
The recommendations are part of a broader effort to make GST enforcement more proportionate while ensuring that serious violations continue to face action.
