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57th GST Council reforms: CBIC chief explains end of GST arrests and faster refunds in Hyderabad

The 57th GST Council meeting’s process reforms were explained to about 250 taxpayers and industry representatives in Hyderabad on 15 October 2026 by Vivek Chaturvedi, chairman of the Central Board of Indirect Taxes and Customs (CBIC). He said the aim is to ease the burden on honest taxpayers and make tax administration an economic partnership.

57th GST Council: CBIC chairman Vivek Chaturvedi and officials at the GST outreach in Hyderabad
CBIC chairman Vivek Chaturvedi and officials at the GST outreach in Hyderabad Photo: PIB (Government of India, free to use with credit).

What the 57th GST Council recommended

The Council met in New Delhi on 8 October under Finance Minister Nirmala Sitharaman. According to its official recommendations, it proposed the complete withdrawal of arrest powers under GST by omitting section 69 of the CGST Act, 2017. It also proposed raising the monetary threshold for prosecution from Rs 1 crore to Rs 5 crore. Chaturvedi said the 56th Council meeting had focused on cutting and rationalising rates, while the 57th turned to processes such as registration, returns, refunds and adjudication. Deccan Chronicle and The Economic Times reported the same points from his interactions with traders. The recommendations also propose amending section 132(1) of the CGST Act so that one clause covers only the offence of fraudulently claiming input tax credit without receiving goods or services or without an invoice. FAQs are being issued to clear doubts.

Key Facts

  • Council meeting: 57th, New Delhi, 8 Oct 2026
  • Outreach: Hyderabad, 15 Oct 2026, about 250 participants
  • Arrest powers: to be withdrawn (section 69, CGST Act)
  • Prosecution threshold: Rs 1 crore to Rs 5 crore
  • Vehicle checks: only on specific intelligence, Joint Commissioner approval

CBIC on GST refunds and vehicle checks

Chaturvedi listed automated, system-driven refunds and fewer manual touch points as key changes. Under the proposals, vehicles will be inspected only on the basis of specific intelligence, only in the states where goods start or end their journey, and only with authorisation from an officer not below Joint Commissioner rank. He also described a proposed centralised administration of GST for taxpayers under the Centre’s jurisdiction and asked traders for feedback. The Economic Times reported that he discussed faceless assessment at a similar session in Bengaluru, and said a draft framework would be put out for public comment. Industry representatives at the Bengaluru session welcomed the move to decriminalise some GST offences, the paper said.

How industry reacted to the GST process reforms

The session drew micro, small and medium enterprises, large manufacturers, service providers, traders, exporters, start-ups and e-commerce operators, along with chambers of commerce. CBIC Member (GST) Sanjay Mangal and Hyderabad CGST Chief Commissioner Arun Kumar also attended. According to the Finance Ministry’s release, industry representatives said the decisions would build a trust-based tax system, improve working capital for businesses and help the ease of doing business. In the afternoon, Chaturvedi and Mangal met CBIC officers and asked for transparent, predictable tax administration. During the morning session, the two officials answered questions from participants, invited suggestions on further reforms and promised to examine them.

Why It Matters: Removing arrest powers and automating refunds could cut the fear and cash-flow strain that small businesses face in GST disputes.

Source: PIB (Ministry of Finance) · GST Council recommendations · Deccan Chronicle · The Economic Times

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