New Delhi, Oct. 29 -- The Goods and Services Tax (GST) Council in its latest meeting has recommended omitting Section 69 of the Central GST Act, which lets GST officers arrest before any tax liability is established. The reform keeps every tool needed to pursue genuine fraud, but moves the decision to jail someone from the investigating officer to a criminal court.

"Personal liberty is an important aspect of our constitutional mandate." These words of the Supreme Court in Siddharth v. State (2021) echo the Council's aim of "a progressive and trust-based tax regime, while retaining effective deterrence against fraud and evasion."

The government is moving from regulating the power of arrest through safeguards to removing that power altoge...