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57th GST Council Proposes Reforms on ITC, Arrests
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57th GST Council Proposes Reforms on ITC, Arrests

October 10, 2026

57th GST Council meeting proposes thresholds for notices, ITC, arrests, and reforms on e-invoicing and returns to ease compliance.

57th GST Council Proposes Broad Reforms for Taxpayers

The 57th GST Council meeting introduced a series of recommendations aimed at simplifying compliance and reducing litigation, including revised thresholds for demand notices, prosecution, and ITC claims. Key proposals include mandatory physical verification before large ITC avails and easing return filing via an Annual Return with Quarterly Payment (ARQP) scheme.

The Council proposed limiting arrests to cases above ₹10 crore fraud, with written approval required. E-invoicing thresholds may be revised upward, and refunds for exporters and inverted duty structures are set to be fast-tracked through automation.

Though recommendations require legislative approval, the proposals signal a shift toward a more facilitative regime. Practitioners should prepare clients for increased scrutiny of high-value ITC claims and anticipate faster refund processing once systems are upgraded. The push to digitize and rationalize enforcement marks a critical evolution in GST administration.

Practice Areas:tax

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