GS3Economy · S&T · Environment · Security· Fiscal policy, budget & taxation (GST)· Prelims + Mains·
Ease of Doing Business vs Tax Compliance: a key GS3 and Fiscal Federalism case study.
The GST Council approved scrapping arrest powers for GST officers and raising the prosecution threshold from ₹1 crore to ₹5 crore to ease enforcement.
The 57th GST Council meeting resulted in the removal of arrest powers for GST officers and a significant hike in the prosecution threshold. Additionally, general penalties were reduced from ₹25,000 to ₹10,000, and a committee was formed to study input tax credit protections.
What is the reduced amount for general penalties under the new GST Council guidelines?
Answer: (d) ₹10,000 — The GST Council reduced general penalties from ₹25,000 to ₹10,000 to ease enforcement.
Q. Discuss how the shift from punitive enforcement to threshold-based prosecution in GST aims to balance tax compliance with ease of doing business.
Dimensions to cover in your answer
Keywords: Ease of Doing Business · Fiscal Federalism · Tax Compliance · Administrative Discretion · Input Tax Credit
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