The GST Council is expected to take up this week a sweeping overhaul of enforcement provisions that would strip tax officials of arrest powers and make prior court approval mandatory for any arrest, according to people familiar with the proposal. If approved, the move could emerge as a key pillar of the government’s next-generation GST reforms aimed at strengthening due process and improving ease of doing business.The council is also likely to consider, at its October 7 meeting, a package of prosecution-related reforms, including raising the threshold for launching criminal proceedings for offences to Rs 5 crore.The proposals also seek to narrow the scope of prosecution provisions so they do not apply to routine disputes over classification, valuation or input tax credit, where businesses and tax authorities may hold differing interpretations of the same transaction, they said.Tax credit boost for employee insuranceEmployers may soon be allowed to claim input tax credit on GST paid for employee health/life insurance premiums. It could lower coverage costs, encourage wider insurance adoptionSimpler rules for online businessesGST Council may consider wide-ranging reforms, including easier registration, protection for genuine buyers’ tax credit, fewer low-value disputes & simplified norms for e-commerce sellersGold import exemption may endThe council is likely to consider withdrawing IGST exemption on gold, silver and platinum imports by banks and agencies, placing them on a par with bullion exchanges and other importersThe proposed enforcement changes are part of the government’s next-generation GST reform agenda, following the major rate rationalisation implemented in September 2025. That overhaul simplified the GST structure around a 5 per cent merit rate and an 18 per cent standard rate, with a 40 per cent rate for select luxury and demerit goods. The next phase is expected to focus on simplifying administration, reducing compliance costs and making enforcement more proportionate.A wider package under consideration includes easier registration, faster refunds, simpler input-tax-credit procedures and changes to show-cause notices and penalties, the people said.At the centre of the enforcement proposal is Section 69 of the Central GST Act, which allows the commissioner, where statutory conditions are met, and there are reasons to believe specified offences have been committed, to authorise an officer to arrest a person. The proposed changes would remove that power from tax officials. Any arrest would instead require judicial authorisation, they noted.They said the proposed changes would not remove the government’s ability to recover taxes or impose financial penalties. Compounding would allow an offence to be settled, subject to payment of the prescribed tax, interest and penalty. Taxpayers found to have short-paid tax or wrongly claimed input tax credit would continue to face recovery proceedings and other statutory consequences.Serious cases involving deliberate evasion or fraud could continue to be prosecuted through the courts, they said.