5 Major GST Council Recommendations: Faster Refunds & Simpler Compliance

5 Major GST Council Recommendations

The GST Council meeting held on 8 October 2026 recommended key changes to simplify compliance and support businesses.

1. Arrest Powers: Proposed removal of GST officers’ arrest powers, with criminal charges for tax fraud above ₹5 crore.

2. Lower Penalties: Maximum general penalty proposed to reduce from ₹25,000 to ₹10,000. No show-cause notices proposed for tax amounts below ₹10,000.

3. Faster Refunds: Up to 90% of eligible refunds may be released provisionally in certain cases.

4. Insurance ITC: Proposed removal of restrictions on Input Tax Credit (ITC) for health and life insurance purchases.

5. Easier GST Registration: Simpler and faster registration proposed for small e-commerce sellers.

Important Note: These are recommendations and have not yet been implemented. GST rates were not changed in this meeting.

Watch our video: 5 Major GST Council Recommendations Explained

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