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57th GST Council Recommends Reforms in ITC, Refunds, Penalties
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57th GST Council Recommends Reforms in ITC, Refunds, Penalties

October 14, 2026

The 57th GST Council approved key reforms on registration, ITC eligibility, refund processing, penalty rationalization, and e-invoicing expansion.

Key Outcomes of 57th GST Council Meeting

Registration and Compliance

The Council approved simplified registration cancellation procedures and proposed auto-enrolment for e-commerce sellers. It recommended that cancellation not be initiated solely for non-filing of two consecutive returns, allowing rectification opportunities.

Input Tax Credit and Refunds

To reduce litigation, the Council introduced timelines for processing ITC mismatches and suggested a graded approach to reversal. Refund processing for exporters will be fast-tracked with partial provisional refunds within 30 days.

E-way Bills and Penalties

The Council recommended increasing e-way bill validity for long-distance transportation and exempting certain goods. Penalties for technical lapses, such as minor return errors, will be reduced or waived under a compounding scheme.

These reforms aim to improve taxpayer experience and reduce disputes. While not legally binding, they will guide upcoming notifications and GSTN portal updates. Tax professionals should monitor rule amendments for compliance adjustments.

Practice Areas:tax

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