57th GST Council Meeting
Between Fine Lines by Adv. Gaurav Gupta
Download here: Client Update 57th GST Council Meeting
Key Recommendations & Practical Implications
Registration • Returns • Refunds • ITC • Enforcement
Implementation subject to applicable amendments and notifications
The GST Council met on 08.10.2026 and recommended some of the widest procedural reforms since 2017. Adv. Gaurav Gupta has put together an analysis in this edition of “Between Fine Lines”.
What stands out:
1. Arrest: complete withdrawal of the power of arrest by omission of section 69.
2. Prosecution: threshold raised to Rs. 5 crore, and “evades tax” deleted from section 132(1)(e).
3. Refunds: system-based sanction, 90% provisional refund without officer intervention, and refund of credit on capital goods and input services.
4. Returns: GSTR-3B to align with GSTR-1 and GSTR-2B from April 2027, with correction within the return.
5. Adjudication: no notice below Rs. 10,000, penalty of 5% on early payment, and pre-deposit capped at Rs. 40 crore in penalty-only orders.
6. Input tax credit: section 17(5) relaxed for outdoor catering, health and life insurance, telecom towers and pipelines.
7. Movement of goods: interception only on specific intelligence, with Joint Commissioner authorisation.
A word of caution. These are recommendations. None of them is law until the Acts and Rules are amended and notified. Existing provisions continue to apply till then.
The note also flags the gaps to watch in the drafts, including multi-year notices, rule 86A and pending prosecutions.
The full analysis is attached. Comments and views are welcome. Download here: Client Update 57th GST Council Meeting
