The 57th GST Council met in New Delhi on October 8, 2026.
It decided to omit Section 69 and raise the Section 132 prosecution threshold to Rs 5 crore.
It cut the general penalty to Rs 10,000.
It widened input tax credit under Section 17(5).
Most changes need notifications, circulars or amendments.
Vehicles can be stopped for inspection only on specific intelligence, authorised by an officer of Joint Commissioner rank or above, according to Whalesbook.
Inspection and seizure would be limited to the supplier’s or recipient’s state, with no interception in transit states, according to TaxO.
Restrictions on input tax credit under Section 17(5) would be removed for outdoor catering, health and life insurance, telecom towers, pipelines laid outside factories, free samples, and goods destroyed or written off on expiry.
Most registration amendments would be auto-accepted, except changes to the principal place of business for taxpayers who are not low risk.
No broad rate cuts were made, and the changes are targeted clarifications, exemptions and reverse charge extensions, according to TaxO.
From November 1, 2026, credit on input services becomes refundable under the inverted duty structure, according to TaxO.
From April 1, 2027, credit on capital goods becomes refundable, spread over 60 months, according to the same report.
Most of the changes need notifications, circulars or amendments to the CGST and IGST Acts before taking effect, and the framework is expected to become operational from April 1, 2027, according to Whalesbook.
A Council decision is a recommendation, and it takes legal force only when the Centre and the states amend the law or issue notifications.
Reports differ on how some items are described, with some calling them decisions and others proposals, so the final wording will be in the Council’s official release.
The 57th GST Council meeting was held in New Delhi on Thursday, October 8, 2026, after being postponed from September 12 and then October 7.
Government buildings, New Delhi (file image), Wikimedia Commons, Free Art License
