The Ministry of Finance (MoF) on March 30, 2026, notified the Goods and Services Tax Settlement of Funds Rules, 2026.
The following has been stated: -
•Rule 2 lays down various definitions of the terms, such as cross-utilization of credit and board.
•Rule 3 specifies Electronic transmission of reports where the GST portal will electronically transmit settlement and cross-utilisation reports to authorities by the 25th of the return-filing month (or next working day/extended date).
•Reports detail transfer of Integrated GST between Centre and States/UTs due to input tax credit cross-utilisation and apportionment.
•A consolidated monthly statement (FORM GST STL-1.01) summarizes total fund transfers for each State/UT.
•Detailed state-wise reports (GST STL-1.02 to 1.08, etc.) list taxpayers and transactions involving utilisation, apportionment, ineligible or unavailed ITC.
•These reports ensure proper accounting, tracking, and distribution of GST revenues between Centre and States/UTs.
They shall be deemed to come into force with effect from April 01, 2025.
The detailed notification is given in the document below.
[Notification No.: G.S.R. 225(E).]
