New Delhi, Oct. 8 -- Industry representatives on Thursday welcomed the reforms recommended by the 57th GST Council, saying the measures would ease compliance, improve cash flows and boost business confidence. However, tax experts cautioned that the benefits would depend on how effectively the decisions are implemented, particularly through legislative amendments that could determine whether the reforms reduce disputes or lead to fresh litigation.

The Council, chaired by Union Finance Minister Nirmala Sitharaman, recommended removing arrest powers from GST officers, raising the prosecution threshold from Rs 1 crore to Rs 5 crore and reducing the general penalty from Rs 25,000 to Rs 10,000.

Reacting to the decisions, Onkar Sharma, Partner...