On this page
GST Council clears process reforms from 1 April 2027, lifting the prosecution threshold to Rs 5 crore
Our read
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.
Ask next
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.
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 |