GST updates

57th GST Council meeting: key recommendations for businesses

The 57th GST Council meeting on 8 October 2026 recommended removing arrest provisions, a lower general penalty and simpler registration. What it means.

By Premisin Editorial Team ·

The 57th meeting of the GST Council was held in New Delhi on 8 October 2026, chaired by Union Finance & Corporate Affairs Minister Nirmala Sitharaman, according to the official press release.

Among the headline recommendations: removal of arrest provisions under GST, raising the prosecution threshold from ₹1 crore to ₹5 crore, and reducing the general penalty from ₹25,000 to ₹10,000.

The Council also recommended wider eligibility for input tax credit and refunds, faster refunds, common standards for GST notices and proceedings, and further simplification of registration and compliance processes.

For small sellers, the Council recommended simplified GST registration for those selling on e-commerce platforms, and approved in principle an optional scheme for small consumer-facing businesses with turnover up to ₹5 crore.

What it means for your business

  • These are recommendations. They take effect only once the relevant laws, rules or notifications are issued, so check the effective date before changing how you file.
  • If you sell online and have been waiting to register, watch for the simplified e-commerce registration process. You will still need a valid principal place of business in each state where you register.

Sources

This is general information, not tax or legal advice. Confirm with your adviser before acting.

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