Press Release Regarding Recommendations of the 57th Meeting of the GST Council · 08 Oct 2026

Ministry of Finance

[Image omitted. See the official document.]

Recommendations of the 57th Meeting of the GST Council

GST Council recommends removal of arrest provisions under GST

GST Council recommends raising prosecution threshold from ₹1 crore to ₹5 crore

GST Council recommends reduction in general penalty from ₹25,000 to ₹10,000

GST Council recommends wider eligibility for input tax credit and refunds

GST Council recommends further simplification of registration and compliance processes

GST Council recommends faster refunds to improve working capital for businesses

GST Council recommends common standards for GST notices and proceedings

GST Council recommends measures for smoother movement of goods across states

GST Council recommends intelligence-based and authorised interception of goods

GST Council recommends simplified GST registration for small sellers on e-commerce platforms

GST Council recommends measures to facilitate export of services

GST Council approves in-principle optional scheme for small consumer-facing businesses with turnover up to ₹5 crore

Posted On: 08 OCT 2026 7:03PM by PIB Delhi

The 57th Meeting of the GST Council was held today in New Delhi, under the chairpersonship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman.

[Image omitted. See the official document.]

The participants included Chief Ministers of Delhi, Goa, Haryana, Jammu & Kashmir, Karnataka, Kerala, Maharashtra, and Meghalaya; Deputy Chief Ministers of Manipur and Telangana; the Finance Ministers and senior members of States/Union Territories with Legislative Assembly, Secretary, Department of Revenue; Chairman and Members of Central Board of Indirect Taxes & Customs and senior officials of the Ministry of Finance.

[Image omitted. See the official document.]

Next-Gen reforms made as per recommendations of the GST Council in its 56th meeting last year had focussed on rate rationalisation and reduction of rates. In the 57th meeting today, GST Council made recommendations relating to process reforms primarily covering registration, returns, refund and adjudication; clarifications regarding applicability of GST on supply of certain goods and services; and other measures for trade facilitation and streamlining compliances in GST. FAQs are being issued for clarification of doubts. Major recommendations made in the 57th GST Council meeting are as below:

A. Process Reforms

A1. Registration related reforms

1. Streamlining registration process with clear guidelines on filing and processing

1.1 As per recommendations of GST Council made in 56th meeting, automatic registrations, without officer intervention, are being granted by the portal under rule 14A of the CGST Rules, 2017, in cases where the applicant does not intend to pass on ITC more than ₹2.5 lakh per month. To streamline processing of registration applications in remaining cases, the GST Council made the following recommendations in the 57th meeting:

• 1. issuance of a comprehensive circular specifying the documents and information required for GST registration, along with frequently asked questions (FAQs), to simplify the filing and processing of registration applications.
• 2. amendment in the registration application in FORM GST REG-01, to provide for drop boxes for selection of prescribed documents/information, so that both the taxpayer and the tax officer have clarity regarding the documents/information to be furnished.
• 3. The GST portal to provide user-friendly interface, for filing registration application with clear navigational paths, drop-down lists, tool-tips and contextual guidance to facilitate correct filing of such applications.

1.2 This will reduce rejections and queries raised in respect of registration applications on account of lack of correct information/details and will expedite processing of registration applications by the tax officers.

2. Rationalization of Procedure for Amendment in GST registration:

2.1 The GST Council recommended an amendment to rule 19 of the CGST Rules, 2017, to provide for automatic acceptance of amendments to all registration particulars on the portal, except those relating to the Principal Place of Business (PPoB). Further, for taxpayers registered under rule 14A of the CGST Rules, 2017 (automatic route), amendments of all registration particulars, including those relating to the PPoB, will be accepted automatically on the portal.

2.2 This will facilitate easy and almost real time updation of registration details on the portal in such cases, without interface with the tax officers.

3. Rationalization of registration cancellation process under GST:

3.1 The GST Council recommended amendments in the CGST Act, 2017 and the CGST Rules, 2017, to simplify the registration cancellation process, as follows:

3.1.1 Automatic cancellation of registration on the application of the taxpayer

Phase 1: The applications for cancellation of registration in FORM GST REG-16 will be accepted automatically by the system, once all pending returns are filed and all dues are paid, in the following cases:

• 1. where the taxpayer has not passed on ITC exceeding ₹2.5 lakh in any of the months since registration;
• 2. where the taxpayer has passed on ITC exceeding ₹2.5 lakh in a month, but has filed the final return in FORM GSTR-10 within specified time period.

Phase 2: All the applications for cancellation of registration will be accepted automatically by the system, once all pending returns are filed and all dues are paid. FORM GST REG-16 will be amended so that the details of FORM GSTR-10 can be furnished in the said application itself.

3.1.2 Suo-moto cancellation of registration

• 1. Amendment in rule 21 of the CGST Rules, 2017, to omit certain grounds of cancellation of registration by the tax officers.
• 2. Amendment in rule 21A and rule 22 of the CGST Rules, 2017 and insertion of rule 23A in CGST Rules, 2017, to provide for a mechanism of system based cancellation and revocation of registration based on non-compliance and subsequent compliance of the defaults of non-filing return or non-furnishing of the details of the bank account, within specified time period.

3.2 These measures will simplify and expedite the process of cancellation of registration and will reduce officer interface and bring more transparency to the cancellation process.

4. Simplified GST registration mechanism for small sellers on the Electronic Commerce Operators (ECO) platform:

4.1 The GST Council, in its 56th meeting had given an in-principle approval to provide a Simplified GST registration mechanism for small sellers on the Electronic Commerce Operators (ECO) platform. In continuity of the same, the Council in the 57th meeting recommended insertion of rule 14B in the CGST Rules, 2017, to provide for a simple mechanism for registration for small suppliers making supplies of goods through ECOs, in States/UTs, where they do not have physical presence, and where they intend to pass on ITC not more than₹2.5 lakh per month, excluding stock transfers between distinct persons, by declaring the warehouse of an ECO in that State/UT, as their Principal Place of Business (PPoB). Registration in such cases will be granted automatically by the system, subject to certain conditions.

4.2 This will enable small sellers to expand their business to other States through e-commerce platforms without having to set up a place of business in each State and will give a significant boost to ease of doing business.

A2. Return related reforms

5. Alternate mechanism for making amendment of liabilities and input tax credit in returns to minimize mismatches and reduction of notices/intimations on account thereof:

5.1 The GST Council recommended inter-alia the following measures to streamline return filing process, so as to minimize mismatches in liability and input tax credit (ITC) in returns:

• 1. Enhancements in FORM GSTR-1/1A/IFF to enable better reconciliation of the details furnished in these forms with the details reported in the return in FORM GSTR-3B.
• 2. Insertion of a rule 86D in the CGST Rules, 2017, to provide for a facility namely, “Electronic Statement of tax paid on Reverse charge basis and input tax credit claimed” on the portal, to facilitate the taxpayers in correct reporting of tax liability and ITC on supplies liable to RCM in returns.
• 3. Insertion of sub-rule (1A) in rule 61 of the CGST Rules, 2017 to provide a mechanism of correct reporting and correction/rectification of liability in the return, so that liability in the return in FORM GSTR-3B aligns with the details of liability furnished in FORM GSTR-1/1A/IFF.
• 4. Amendment in FORM GST DRC-03, to declare the details of the underlying invoice for which payment has been made.
• 5. Insertion of sub-rule (6A) in the rule 60 of the CGST Rules, 2017, in respect of the facility namely, Invoice Management System (IMS), to allow a recipient to accept, reject or keep pending a document pertaining to inward supply received on the portal, for the purpose of generation of statement of ITC in FORM GSTR-2B, subject to certain conditions, including the period for which a credit note can be kept pending on IMS.
• 6. Insertion of rule 86C in the CGST Rules, 2017 to provide for a facility namely, “Electronic Credit Reversal and Reclaim Statement” on the portal, to facilitate the taxpayers in correct reporting of ITC reversed and reclaimed in FORM GSTR-3B.
• 7. Insertion of sub-rule (1B) in the rule 61 of the CGST Rules, 2017, to provide a mechanism of correct reporting and correction/rectification of ITC in the return, so that ITC availed in the return in FORM GSTR-3B aligns with the details of ITC made available in FORM GSTR-2B.
• 8. Issuance of a circular to clarify the manner of furnishing correct and proper information of ITC and reversal thereof in return in FORM GSTR-3B, in the context of IMS, Electronic Credit Reversal and Reclaim Statement and Electronic Statement of tax paid on Reverse charge basis and input tax credit.