57th GST Council Meeting: Key Changes Proposed for Prosecution, ITC and Refunds
The 57th GST Council Meeting, held in New Delhi on 8 October 2026 under Union Finance Minister Nirmala Sitharaman, addressed GST administration, taxpayer compliance, refunds and Input Tax Credit (ITC).
According to the Ministry of Finance, the Council proposed changes to arrest provisions under GST, an increase in the prosecution threshold from ₹1 crore to ₹5 crore, and a reduction in the general penalty from ₹25,000 to ₹10,000. These measures require applicable legal amendments and notifications before taking effect.
Input Tax Credit and Refunds
The Council considered ITC claims involving suppliers who fail to meet statutory obligations. A review mechanism was proposed for such cases, alongside measures concerning discrepancies in tax returns.
Refund-related proposals include reducing the acknowledgement period for refund applications from 15 days to 10 days. The Council proposed wider ITC eligibility under the inverted duty structure and changes to capital goods credit distribution. Implementation dates and applicable conditions remain subject to official notifications.
Registration and Compliance
The proposed changes cover GST registration, return filing, amendments and cancellation procedures. Other measures concern standardised GST notices and proceedings, automated processes and the movement of goods between states.
The meeting included matters relating to small sellers using e-commerce platforms, the export of services, and the GST treatment of specified goods and services.
These developments were among the subjects reviewed during a webinar organised by the ACMA Western Region on 21 October 2026.
The Council’s announcements should be distinguished from provisions already in force. Businesses should consult official notifications and circulars to determine when individual measures become applicable.
OFFICIAL SOURCES
Ministry of Finance, Government of India:
https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2320934&lang=2®=48
GST Council, official press releases:
https://gstcouncil.gov.in/press-release?page=0
