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Summary of Recent GST Amendments and Clarifications (Dated 26 October 2026)

The Government has amended the GST Rules through Notification No. 05/2026–Central Tax dated 26 October 2026. Most of the changes apply from 1 November 2026, and a few will apply later. The main changes are explained below in simple terms.

1. GST Registration

  • Online sellers can now take GST registration in another State using the e-commerce company’s warehouse, even if they have no office there. This is for small sellers only.
  • Changes in registration details must be applied for within 15 days. If the officer does not respond in time, the change will be treated as approved.
  • To cancel the registration, the application must be filed within 30 days, and all pending returns must be filed first. Simple cases will be cancelled automatically by the GST portal.

2. Registration for non-filing of returns (from 1 April 2027)

  • If returns are not filed, the GST portal will automatically suspend the registration.
  • If returns are still not filed within 30 days, the registration will be cancelled.

3. Refunds

  • Refunds will be processed faster. The department must respond within 10 days, and part of the refund will be given by the system within 3 working days.
  • For inverted duty refunds, GST paid on services can now be claimed (for credit taken from 1 November 2026). GST paid on machinery can be claimed from 1 April 2027.
  • The earlier limit on export refunds of goods (1.5 times the domestic price) has been removed.

4. Blocking of input tax credit (from 1 April 2027)

  • The department can block credit only by issuing a proper written order. The block will last for a maximum of one year.
  • The taxpayer can file an objection against the blocking.

5. Returns

  • The return for foreign (non-resident) taxpayers (GSTR-5) is now due on the 13th of the next month instead of the 20th.
  • In the annual return (GSTR-9) and reconciliation statement (GSTR-9C), some tables were optional or could be filled in a simpler way up to FY 2024-25. This relief will now continue for FY 2025-26 and later years as well.

6. E-invoicing (from 1 January 2027)

  • E-invoices will also be required for purchases from unregistered persons under reverse charge and for import of services.

7. Guidelines on notices, orders and appeals (Circular No. 258/04/2026-GST dated 26 October 2026)

  • A show cause notice must clearly give the facts, evidence, legal provisions and amount of demand, preferably year-wise.
  • Officers cannot allege fraud or suppression just because tax was not paid or a mismatch was found in scrutiny. Clear evidence of intent to evade tax must be shown in the notice itself.
  • Central and State GST officers cannot both start proceedings on the same issue.
  • The taxpayer must be given a personal hearing, and a virtual hearing may be allowed. Not more than 3 adjournments are allowed.
  • The order must deal with each point in the taxpayer’s reply and the case laws cited. The demand cannot be more than the amount in the notice, and no new grounds can be added.
  • Rectification can be done only for obvious errors, and only by the officer who passed the order.
  • Appeals should not be rejected on merits at the filing stage, and should be decided within one year as far as possible.

8. Guidelines for new GST registration (Circular No. 257/03/2026-GST dated 26 October 2026)

  • CBIC has given a clear list of documents to be uploaded for each type of business and each type of premises: owned, rented, family-owned, co-working space, SEZ and inherited property. Standard formats for the consent letter, undertaking and affidavit are also given.
  • If the premises belongs to a family member (parents, spouse, etc.), it should not be shown as “own”. It should be shown as “consent”, along with a consent letter from the owner.
  • If there is no rent agreement, registration can still be taken with an undertaking and an electricity or water bill.
  • Officers cannot ask for unnecessary documents, such as an Udyam certificate, or proof that the director lives in the same city. They also cannot reject an application because the electricity connection is domestic or the premises is residential.
  • Queries can be raised only once, through the GST portal, generally within 7 working days. The applicant must reply within 7 working days, and the officer must decide within 7 working days after the reply. If the officer does not act in time, registration is deemed approved.
  • If Aadhaar authentication is done, the application is generally processed within 7 working days. Otherwise it may take up to 30 days, including physical verification.
  • In case of delay or unnecessary queries, a complaint can be filed with the Chief Commissioner (Central Tax) or Commissioner (State Tax) on the email ID notified for this purpose.

9. Pre-deposit for filing appeals (Circular No. 259/05/2026-GST dated 26 October 2026)

  • The amount the taxpayer accepts must be paid in full, and 10% of the disputed tax must be paid as pre-deposit for filing the appeal.
  • For an appeal to the GST Appellate Tribunal, the 10% is calculated on the tax confirmed by the first appellate authority that is still disputed. This is in addition to the pre-deposit already paid at the first appeal stage.
  • If the appeal is decided in the taxpayer’s favour, pre-deposit can be claimed back even if the order does not say so. The refund is claimed in RFD-01 under “on account of order”.
  • The refund cannot be denied just because the department plans to appeal or has appealed, unless the order is stayed.
  • Interest on the refund is calculated separately from the date each pre-deposit was paid at each appeal stage.
  • If the Tribunal sends the matter back (remand), the pre-deposit will be refunded. In a partial remand, the confirmed demand will be adjusted first and the balance will be refunded.