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LatestGoods & Service Tax (GST) 9 October 2026

GST Council Overhauls Rules: AI, Penalties, Refunds, and Enforcement

India's GST Council introduced sweeping reforms, praising an AI risk‑assessment model for Andhra Pradesh, removing GST officers' arrest powers, raising the prosecution ceiling to Rs 5 crore, cutting penalties, automating refunds, and planning a faceless CGST administration by FY28, while also easing input tax credit rules.

Key reforms from the 57th GST Council meeting

  • AI risk‑assessment engine lauded for Andhra Pradesh's GST compliance – New Indian Express
  • Major tax reforms: simpler registration, eased penalties and faster refunds – Business Standard
  • Arrest powers of GST officers removed; prosecution limit raised to Rs 5 crore – Deccan Chronicle
  • Plan for a faceless CGST administration rollout by FY28 – Chinimandi
  • Input tax credit rationalisation and broader ITC availability – LKS Attorneys

These changes aim to boost compliance, reduce disputes, and modernise GST administration.

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