The Goods and Services Tax Network (GSTN) on October 09, 2026, notified that the 57th GST Council Meeting recommended reforms to GST Compliance, Registration and Enforcement.
The GST Council, at its 57th meeting held on October 8, 2026, recommended a series of reforms aimed at simplifying GST compliance, streamlining registration and return filing, expediting refunds, and improving the flow of Input Tax Credit (ITC). Key proposals include removing arrest provisions under GST, increasing the prosecution threshold from ₹1 crore to ₹5 crore, reducing the maximum general penalty from ₹25,000 to ₹10,000, simplifying GST registration for small e-commerce sellers, and facilitating the movement of goods across States. The Council also recommended clarifications and changes relating to GST rates on goods and services, exports, and relief measures for small taxpayers. These are recommendations and will take effect only through the relevant notifications, circulars or legislative amendments, as applicable.
