The 57th GST Council meeting was held today, 8 October 2026, in New Delhi. While the 56th meeting cut tax rates, this meeting fixed the process. In short, GST is moving from a policing model to a trust model.
Note: These are recommendations. They will apply only once the law, rules and notifications are amended.
Sr. No. | Area | Today | After the change |
1 | Arrest | Officers can arrest | No arrest power at all |
2 | Prosecution | Above ₹1 crore | Only above ₹5 crore |
3 | Notices | Issued for any amount | No notice below ₹10,000; pending cases below this close |
4 | General penalty | Up to ₹25,000 | Up to ₹10,000 |
5 | Penalty if paid quickly (non-fraud) | Higher of 10% or ₹10,000 | Only 5% if paid within 30/60 days of order |
6 | Refunds | Officer approval needed | Cash balance refund fully automatic; 90% of export and inverted duty refunds automatic |
7 | Blocked ITC | Not allowed on insurance, catering etc. | ITC allowed on outdoor catering, health & life insurance, telecom towers, pipelines outside factory, free samples, expired goods destroyed |
8 | Refund of ITC | Only on inputs | Inverted duty: ITC on services too (from 1 Nov 2026). Capital goods ITC refundable (from 1 Apr 2027, over 60 months) |
9 | E-way bill checks | Vehicles stopped in any state | Only on specific intelligence; no checking in transit states |
10 | Export of services | Services to own foreign branch not export | Can qualify as export; services on foreign clients’ goods too |
1 Nov 2026 | ITC on services eligible for inverted duty refund |
1 Apr 2027 | ITC on capital goods eligible for refund |
April 2027 return | New GSTR-3B correction system |
The official PIB press release dated 8 October 2026 is attached for reference.
Please feel free to reach out for any clarification or client-specific impact.