The 57th GST Council Meeting was held on October 8, 2026, in New Delhi, under the chairpersonship of Union Finance Minister Nirmala Sitharaman. The Council recommended several changes to GST procedures, focusing on simplifying tax compliance, improving the flow of Input Tax Credit (ITC), speeding up eligible refunds and reducing difficulties faced by businesses.

Among the key recommendations, the Council proposed removing arrest provisions under GST, increasing the prosecution threshold from ₹1 crore to ₹5 crore, and reducing the maximum general penalty from ₹25,000 to ₹10,000. It also recommended wider ITC refund eligibility for certain input services and capital goods, simplified GST registration and compliance procedures, and common standards for GST notices and proceedings. In addition, the Council approved in principle an optional GST scheme for small consumer-facing businesses with turnover up to ₹5 crore. These measures aim to reduce compliance burdens and improve ease of doing business. Taxpayers should check the applicable notifications and amendments before relying on any recommendation as an effective legal change.

Businesses should review how these proposed changes may affect their GST registration, return filing, ITC claims and refund eligibility. Kanakkupillai provides GST registration support, including application preparation, document verification and assistance throughout the registration process. Businesses can also seek professional guidance to understand their GST compliance requirements and prepare for applicable regulatory changes.

Category: GST & Tax News

Reviewed by: Vaishnavi B (Chartered Accountant) 

Experience: 20+ Years

Specialization: GST Advisory, Regulatory Compliance, Tax Audit Representation, Notice Response Management

Last Updated: October 9, 2026,