Mains issueGS-3News & Analysis13 October 2026

Reforms in GST Administration, Enforcement, and Fiscal Federalism

An aspirant should be able to critically analyze the ongoing reforms and challenges in GST administration, particularly concerning enforcement powers, tax evasion, and the dynamics of fiscal federalism within the GST framework.

Source: thehindu.comOriginal report

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Why now

The recent 57th GST Council meet's recommendations regarding tax officers' arrest powers and states' demands on IGST division highlight ongoing debates in GST administration and Centre-State financial relations. This makes it a current and relevant issue for understanding the evolution and challenges of India's indirect tax regime.

Core issue

At the 57th GST Council meet, Kerala opposed the recommendation to fully scrap the arrest powers of tax officers under Section 69 of the CGST Act, 2017, advocating for their retention in cases of serious tax fraud and high amounts to deter large-scale evasion. Kerala also sought the formation of a Group of Ministers (GoM) to examine issues related to Central procurements and the division of Integrated Goods and Services Tax (IGST) among states, in addition to proposing the expansion of e-invoicing to e-commerce and gold trade sectors to prevent tax leakage.

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