Key recommendations of the 57th GST Council meeting held on October 08, 2026
Compliance and export
- Amendments in registration details, other than change in principal place of business, automatically through GST portal
- Alternate mechanism to correct Input Tax Credit (“ITC”) and tax liability in returns to be introduced from April 2027
- Services supplied by Indian service providers to their foreign branches / offices to qualify as exports
- Services on goods made physically available by foreign recipient to Indian supplier to qualify as exports
Credit and refunds
- ITC to be allowed on outdoor catering, free samples, health and life insurance spends
- System based processing for faster disposal of refunds
- Refund of accumulated ITC on input services and capital goods allowed in phased manner
Enforcement provisions rationalized
- Arrest powers under GST to be completely withdrawn
- Prosecution threshold raised from ₹10 million to ₹50 million
- Goods in transit can be inspected only by origin and destination states
Notices and adjudication
- Tax materiality threshold of ₹10,000 recommended for issue of Show Cause Notice
- Reduction of minimum penalty from 10% to 5% in specified cases
- General penalty slashed from ₹25,000 to ₹10,000
These are recommendations of the GST Council. They take effect only through amendments, notifications and circulars.