The 57th meeting of India’s GST Council was held on 8 October 2026. The Council recommended a wide package of measures to simplify GST compliance for businesses, from faster refunds and wider input tax credit to lower penalties and the removal of arrest powers. Most of these recommendations still need legislative or rule changes before they take effect, so businesses should plan for the transition now.
1. Input Tax Credit (ITC)
The Council recommended allowing ITC on some expenses, such as outdoor catering, health and life insurance, telecom towers and pipelines outside factory premises. Some relief was also proposed for hotel stays, restaurant services and fitness services used in the same line of business.
2. Faster GST Refunds
The Council proposed making GST refunds faster. The time to issue a refund acknowledgement or deficiency memo will be reduced from 15 days to 10 days. Eligible businesses may also get 90% of their refund in advance, based on risk assessment.
3. Easier GST Return Filing
The Council recommended better matching of GST returns to reduce mistakes. New statements will help businesses track reverse-charge payments and ITC that has been reversed and claimed again.
4. Simpler GST Registration
The GST registration process will become easier. Most changes in registration details may be approved automatically, subject to certain conditions. Small sellers selling goods through e-commerce platforms may also get easier registration facilities.
5. Easier Movement of Goods
The Council recommended reducing unnecessary checking of goods during transportation. Officers should have specific information and proper authorization before checking goods. This will help reduce delays for businesses.
6. Lower Penalties
The Council proposed reducing the maximum general penalty under Section 125 from ₹25,000 to
₹10,000. In certain cases, taxpayers may pay a lower penalty if they pay the tax and interest within the prescribed time.
7. Arrest and Prosecution
The Council recommended removing the power of arrest under GST and increasing the limit for starting prosecution from ₹1 crore ((INR 10 million) to ₹5 crore (INR 50 million).
Eurofast Take
Eurofast can help businesses in our region assess what these changes mean for their dealings with India and, through our international partner network, connect them with trusted GST specialists on the ground.
For more information, please contact [email protected]