57th GST Council Meeting: Procedural Reforms and What Stays Unchanged Until They Are Notified

The 57th GST Council meeting, held in New Delhi on 8 October 2026 under the Union Finance Minister, recommended changes in registration, returns, refunds, notices and penalties, arrest and prosecution, input tax credit, exports, e-way bill enforcement and a number of rate and exemption items.

The meeting followed the 56th, which dealt with rate rationalisation, and concentrated on procedure. The items below are taken from the Council's press release. Each is a recommendation; none operates until the CGST Act, 2017, the CGST Rules, 2017 or the IGST Act is amended or a notification or circular is issued. Current law continues to govern until then.

Registration

  • Automatic registration already exists under Rule 14A of the CGST Rules, 2017 for applicants who do not pass on input tax credit above Rs 2.5 lakh per month. For other applicants, a circular with the document list and FAQs, a revised Form GST REG-01 with dropdown selections and better portal guidance are to be provided.
  • Amendment of registration under Rule 19 is to be accepted automatically, except for a change of the principal place of business. For Rule 14A registrants, all amendments including that change are to be accepted automatically.
  • Cancellation through Form GST REG-16 is to be eased in two phases. In phase 1, acceptance is automatic once pending returns are filed and dues paid, where either the credit passed on never exceeded Rs 2.5 lakh in any month, or it did but the final return in Form GSTR-10 was filed in time. In phase 2, acceptance is automatic in all cases after returns and dues. Form REG-16 is to capture GSTR-10 details. System-based cancellation and revocation are proposed where returns or bank details were not furnished in time and compliance followed.
  • A new Rule 14B is proposed for small goods suppliers who sell through e-commerce operators in States or Union Territories where they have no physical presence and intend to pass on credit of not more than Rs 2.5 lakh per month. Registration would be automatic, with the operator's warehouse in that State declared as the principal place of business. It does not create a single all-India GSTIN.

Returns and Reconciliation

  • GSTR-1, GSTR-1A and the Invoice Furnishing Facility are to be enhanced to reconcile with GSTR-3B, with a mechanism under Rule 61 for correcting liability.
  • A new electronic statement is to show tax paid on reverse charge and the credit claimed on it, and Rule 86C is to provide an electronic statement of credit reversed and reclaimed in GSTR-3B.
  • The Invoice Management System lets a recipient accept, reject or keep documents pending, and the treatment and pending period of credit notes are to be addressed, with the aim of an accurate GSTR-2B.
  • An alternative mechanism for correcting liability and credit is to begin from the April 2027 return period. The draft is to be placed in the public domain for time-bound consultation, and the Finance Minister is authorised to approve changes after feedback.

Refunds