GST and tax updates, explained simply.

57th GST Council meeting: 12 changes every business should know

The GST Council met on 8 October 2026 at Bharat Mandapam, New Delhi. No rate changes this time. The meeting was about easing compliance: fewer notices, lower penalties, faster refunds and no arrests.

1. Notices and penalties

• No show cause notice below ₹10,000 of tax (CGST + SGST + IGST + cess). Pending notices and appeals below this limit are to be decided as if the threshold applied.
• General penalty (Section 125) cut from ₹25,000 to ₹10,000.
• 5% penalty in non-fraud cases if tax and interest are paid within 30 days (Section 73) or 60 days (Section 74A) of the order.
• Pre-deposit for penalty-only appeals capped at ₹20 crore CGST + ₹20 crore SGST.
• Taxpayers can object to blocking of the electronic credit ledger (Rule 86A) and ask for a personal hearing.

2. Arrest and prosecution

• Power of arrest (Section 69) to be removed.
• Prosecution threshold raised from ₹1 crore to ₹5 crore, and offences under Section 132 narrowed.

3. Refunds

• 90% of export and inverted-duty refunds sanctioned automatically on risk assessment, within 3 working days of acknowledgement.
• Acknowledgement or deficiency memo within 10 days instead of 15; otherwise deemed acknowledged.
• Excess balance in the electronic cash ledger refunded automatically.
• Inverted duty refund widened: ITC on input services availed on or after 1 November 2026, and on capital goods availed on or after 1 April 2027 (refunded over 60 months).

4. Input tax credit

Credit no longer blocked under Section 17(5) for employee health and life insurance, outdoor catering, telecom towers, pipelines outside the factory, free samples, and goods destroyed on legally required expiry. Limited ITC for hotel stays up to ₹7,500 per day, restaurant and gym services when resold in the same line of business. A committee will study ITC on motor vehicles and protection of genuine buyers when the supplier defaults.

5. Registration and returns

• Routine amendments (trade name, partners/directors, additional place of business) approved automatically.
• Cancellation applications to be accepted automatically in phases, starting with small taxpayers.
• Small e-commerce sellers can use the platform's warehouse as principal place of business in another state.
• Optional annual return with quarterly tax payment approved in principle for B2C-only taxpayers with turnover up to ₹5 crore.
• Late fee relief for taxpayers up to ₹5 crore if the delayed return is filed by month-end.

6. E-way bills

Vehicles can be stopped only on specific intelligence with approval of an officer not below Joint Commissioner, and only by the state where the supplier or recipient is located. No interception in transit states.

7. Rates

No change in GST rates. Rate changes will now be taken up once a year in a separate meeting. Delivery services through e-commerce operators: 5% without ITC. Isabgol (psyllium seeds) at NIL rate.

These are the Council's recommendations. Most need amendments to the CGST Act or notifications from CBIC before they apply. We will update this post when notifications are issued.

Sources: Business Standard, TaxGuru, Taxscan

Compliance calendar: October 2026

All the GST, income tax and TDS due dates for this month in one place. Mark them now to avoid late fees and interest.

Dates are the regular statutory due dates. CBDT or CBIC sometimes extend them; check the official portals or ask us before relying on an extension.

GST registration: documents you need and who must register

Getting a GSTIN is simple when your documents are ready. Here is the checklist we use for every client.

Who must register

• Businesses supplying goods with aggregate turnover above ₹40 lakh (₹20 lakh in special category states). Madhya Pradesh follows the ₹40 lakh limit for goods.
• Service providers with turnover above ₹20 lakh (₹10 lakh in special category states).
• Anyone making inter-state taxable supplies of goods, selling through e-commerce platforms that collect TCS (with some exemptions for small sellers), or liable under reverse charge, regardless of turnover.

Documents checklist

Proof of business address

• Owned premises: latest electricity bill or property tax receipt.
• Rented: rent agreement plus the owner's electricity bill.
• Family or relative's property: consent letter (NOC) from the owner plus their electricity bill.

How fast can you get it?

We prepare and file your application within 1 hour of receiving complete documents. Aadhaar authentication of the promoter speeds up approval; the officer may still raise a query or ask for physical verification.