08/10/2026
57th GST Council Meeting – Key Changes
1. 🚚 Fewer GST checks on goods in transit
* Vehicles can be stopped only on specific intelligence and with prior approval of an officer not below Joint Commissioner.
* Only the origin and destination States can inspect the goods.
* States through which goods are merely passing cannot stop the vehicle for inspection.
* This should reduce unnecessary highway checks and delays.
2. 🛡️ GST arrest power removed
* The power of arrest under GST is being removed.
* Prosecution threshold increased from ₹1 crore to ₹5 crore.
* Minimum punishment removed; courts will decide the appropriate punishment.
* This is a major relief from the enforcement perspective.
3. 💰 General GST penalty reduced
* General penalty reduced from ₹25,000 to ₹10,000.
* For ordinary delays/mistakes, the approach is intended to be limited to recovery, interest and proportionate penalty.
4. 💵 GST refunds to become much faster
* Refund acknowledgement period reduced from 15 days to 10 days.
* If no acknowledgement or deficiency memo is issued within 10 days, the claim is treated as acknowledged.
* 90% of eligible refunds will be sanctioned through system-based risk assessment.
* Refund order timeline reduced from 7 days to 3 working days after acknowledgement.
* Excess cash ledger balance refund becomes fully automatic.
5. 🏭 Refund of GST on machinery in certain cases
* GST paid on plant and machinery can become eligible for refund in specified inverted-rate/export situations.
* Refund will be calculated over 60 months.
* Applicable for credit availed from 1 April 2027.
* This can significantly improve working capital for capital-intensive businesses.
6. 🏥 ITC on employee health & life insurance
* ITC will be available on health and life insurance taken for employees.
* This can reduce the effective GST cost for employers.
7. 🛒 ITC on free samples and expired stock
* ITC will be available on free samples.
* ITC will also be available on stock written off due to expiry where destruction is legally required.
8. 🏨 No double taxation in certain 5% services
* Certain services such as hotel accommodation up to ₹7,500/night, restaurant/catering and passenger transport can get ITC through the chain.
* The objective is to prevent tax being effectively charged twice in the same business chain.
9. 👨💼 Easier GST registration amendments
* Changes relating to trade name, director/partner and additional place of business will be accepted automatically.
* This should reduce officer dependency and processing time.
10. 🧾 Small taxpayers may get simpler GST compliance
* In-principle approval for an optional scheme for taxpayers with turnover up to ₹5 crore, supplying only to consumers.
* They would file one return annually and pay tax quarterly.
* Detailed framework will come later.
11. 🏪 Easier closure of GST registration
* GST registration cancellation/closure will increasingly become automated.
* Final return will become part of the closure application.
* Registrations suspended/cancelled for missing returns or bank details can be restored once the deficiency is corrected.
12. 🌎 More services can qualify as exports
* Services provided through an Indian company’s foreign branch can get export benefit.
* Testing, repair, certification, research and processing performed in India on goods belonging to foreign clients can also qualify as export of services.
13. 🛍️ Small sellers get easier access to e-commerce platforms
* Small sellers can use an e-commerce operator’s warehouse in another State as their principal place of business, subject to conditions.
* This can make inter-State e-commerce selling easier for small businesses.
14. 🧑💻 Buyer protection on genuine ITC – under examination
* A committee will examine protection for a genuine buyer who:
* has a proper invoice,
* received the goods, and
* paid the supplier in full.
