GST Council decisions, portal changes, compliance notes and more.
The GST Council, in its 57th meeting held on 8 October 2026, recommended a series of reforms to simplify GST compliance, streamline registration and return filing, expedite refunds, and improve the flow of Input Tax Credit (ITC). Key recommendations include the removal of arrest provisions under GST, raising the prosecution threshold from ₹1 crore to ₹5 crore, reducing the maximum general penalty from ₹25,000 to ₹10,000 simplifying GST registration for small e-commerce sellers, and facilitating the movement of goods across States. The Council also recommended various clarifications and changes relating to GST rates on goods and services, exports, and relief measures for small taxpayers. These recommendations aim to promote ease of doing business, enhance transparency, and reduce the compliance burden on taxpayers. The recommendations will be implemented through the relevant notifications, circulars, and legislative amendments.
The notification grants an extended filing window until 31 July 2026 for eligible appeals and applications before the GST Appellate Tribunal. This extension provides additional time to taxpayers as well as tax authorities to institute proceedings before the Tribunal in cases covered under Section 112 of the CGST Act, 2017, while preserving the normal statutory limitation period for orders issued after the specified cut-off dates.
The EWB portal is making Ship-To GSTIN mandatory for Bill-To Ship-To transactions and introducing an E-Way Bill closure facility, requiring taxpayers and software providers to update their systems accordingly.