General Penalty towards Proportionate Enforcement

The proposed reduction in the general penalty under Section 125 of the CGST Act would lower the maximum penalty from ₹25,000 to ₹10,000 where a contravention is not covered by a separately prescribed penalty. The Council has also recommended raising the prosecution threshold from ₹1 crore to ₹5 crore and removing the independent arrest powers of GST officers.