The GST Council's 57th meeting in October 2026 recommended process reforms on registration, refunds, late fees and ITC, per the PIB release of 9 October 2026. For context, the IBJA 24K gold benchmark is Rs 1,40,054 per 10 g (PM rate of 30 Oct 2026), before GST; the release does not mention jewellery. The release does not state old rates for the rate items it lists, so the table shows only the recommended treatment. Most items are recommendations, and the release also lists approved amendments to the CGST Act, 2017 and the GSTAT Rules, 2023. Each change applies only once it is notified.
What the release covers
The table lists the main items in the release. Where the release does not give a date, the table says so. It is a selection, not the full list.
| Area | What the Council recommended | Effective date in the release |
|---|---|---|
| Amendments to registration | Automatic acceptance on the portal, except changes to the principal place of business | Not stated |
| Principal place of business (PPoB) | For taxpayers registered through the automatic route, amendments including PPoB accepted automatically | Not stated |
| Cancellation of registration | Accepted automatically once pending returns are filed and all dues are paid | Not stated |
| Refund acknowledgement | Acknowledgement period cut from 15 days to 10 days, with deemed acknowledgement where no response is issued | Not stated |
| Refund of ITC on capital goods (specified cases) | Refunds spread over 60 months | On or after 1 April 2027 |
| Refund of ITC on input services (inverted duty structure) | Refund of accumulated ITC allowed in specified cases | On or after 1 November 2026 |
| Correcting liability and ITC in returns | An alternate mechanism to correct liability and input tax credit | From the April 2027 return period |
| Late fee for delayed returns | Waiver for taxpayers with turnover up to Rs 5 crore in the previous financial year, if the return is filed by the end of the month in which it was due | Not stated |
| Psyllium seeds (isabgol) | Nil GST rate, whether fresh, chilled, frozen or dried. Old rate not stated in the release | Not stated |
| Passenger transport and renting of motor vehicles (with operator) using electric vehicles | Option to pay 5 percent GST with restricted ITC, where battery charging cost is in the consideration. Old rate not stated in the release | Not stated |
| Delivery services through an e-commerce operator (other than courier or postal), and delivery services for goods supplied or ordered through one | 5 percent GST without ITC. Old rate not stated in the release | Not stated |
| Prosecution threshold | Raised from Rs 1 crore to Rs 5 crore | Not stated |
Try it: the GST Calculator takes an amount and a rate, inclusive or exclusive, and shows the GST and the total. The Reverse GST Calculator works the other way, from a price that includes GST.
The release also lists clarifications on specific goods. It says sublimation paper falls under heading 4809, that the notification entry on toys covers all toys under heading 9503 of the Customs Tariff Act and is not limited to tricycles, scooters and pedal cars, and that seaweed extract based bio-stimulants registered under Schedule VI of the Fertiliser Control Order are classifiable as fertilisers under heading 3101.
Who it affects
Registered taxpayers, who the release puts at about 1.70 crore as of September 2026, are the main group. Small sellers on e-commerce platforms with ITC of not more than Rs 2.5 lakh a month (excluding stock transfer) get a PAN based simple registration in states other than their home state. Exporters and SEZ units are affected by the refund changes for zero-rated supplies. For refund claims on zero-rated supplies and inverted duty structure, the release expects 90 percent of the claimed amount to be sanctioned, based on risk assessment. Taxpayers with ITC blocked under Rule 86A and businesses with turnover up to Rs 5 crore that file late are also named in the release.
What to do
- Check the notification or CBIC circular before you change how you file, because the release describes most items as recommendations.
- Keep your returns filed and your dues paid, since the release ties automatic cancellation of registration to both.
- If ITC has been blocked under Rule 86A, note the proposed right to file an objection and to attend a personal hearing, and watch for the date it is notified.
- Watch for the CBIC circular on demand notices, adjudication orders and appeal orders, which the release says the Council recommended.
What has not changed
The release describes the two main rates of 5 and 18 percent and the special 40 percent rate as the structure from the 56th meeting. It does not mention gold jewellery, so nothing in it changes the 3 percent GST on total value that the GST on Gold Calculator applies.
Common mistakes
- Treating a recommendation as a law change. The release uses both recommended and approved language, so check each item.
- Reading the April 2027 dates as already in force. The release gives them as dates for later periods.
- Assuming the 60 month refund spread applies to all ITC. The release limits it to ITC on capital goods in specified cases.
