Goods and Services Tax (GST) reforms aimed at easing compliance for businesses will be rolled out in phases starting November 1, while changes requiring amendments to the law are expected to take effect from April 1 next year, a senior CBIC official said on Thursday.
Sanjay Mangal, Member (GST) of Central Board of Indirect Taxes and Customs (CBIC), said the decisions taken at the 57th GST Council meeting focused on process and structural reforms to reduce the compliance burden on taxpayers, improve the flow of input tax credit (ITC) and facilitate refunds.
The 57th Meeting of the GST Council took place on October 8 in New Delhi under the chairpersonship of Union Finance and Corporate Affairs Minister Nirmala Sitharaman.
“Wherever Act amendments are not required, they will be implemented as soon as possible. Tentatively, these reforms will start from November 1, 2026,” Mangal said during a media interaction here.
He said the reforms would be introduced in phases, depending on the system changes required.
Measures requiring amendments to the Central and state GST laws would be implemented after the necessary legislative changes, with the Council deciding to target April 1, 2027 for their rollout, Mangal added.
Among the measures requiring amendments are changes to arrest provisions, rationalisation of prosecution thresholds, modifications to e-way bill provisions and the introduction of a minimum threshold of ₹10,000 for show-cause notices, he said.
Mangal said the CBIC is focusing on technology-driven checks to prevent the generation of fake invoices and fraudulent ITC claims, rather than relying primarily on action after such frauds occur.
The Council has decided to amend the return filing mechanism so that tax declared as payable by a supplier, which is passed on as ITC to the recipient, will have to be paid, he said.
“This check will ensure that fake invoices and fake ITCs are not generated in the first instance. The emphasis would be on preventing fraud at the source instead of relying on subsequent proceedings, including arrests,” Mangal said.
He clarified that arrests already made would not be affected by the proposed changes. The new provisions relating to arrests, including the removal of arrest provisions from the law as decided by the Council, would take effect from April 1, 2027.
The department and the CBIC are considering how the issue could be addressed through instructions or guidelines until the new provisions come into effect, but no decision has been taken so far, he said.
On compliance relief for small traders, Mangal said the Council had given in-principle approval to a new return filing mechanism for businesses making only business-to-consumer (B2C) supplies and having an annual turnover of less than ₹5 crore.
Under the proposed mechanism, eligible traders would be able to file returns annually and make tax payments quarterly, reducing their compliance burden.
The Council has also decided that small traders with turnover of up to ₹5 crore would not face late fees if they file their returns within the same month in which they were due, even if there was a delay, he said.
On refunds, Mangal said automated sanctioning of refunds would begin after November 1, where applicable. However, he clarified that the measure would apply to future refund claims and not to accumulated refund claims already pending.
Mangal said the latest Council meeting had focused on process reforms, unlike the previous meeting in September 2025, which concentrated on rate rationalisation and reductions covering around 400 items.
The 57th meeting did not consider any GST rate revisions. Instead, it was decided that rate-related issues would be taken up separately at a future meeting, the date for which has not yet been finalised. The earlier rate rationalisation exercise was aimed at passing on benefits to consumers and the government had closely monitored the process, Mangal said.
The latest measures, however, were primarily intended to benefit businesses by easing compliance, addressing ITC blockages and facilitating refunds. Any benefit to consumers would be indirect, through smoother business operations and the possible sharing of gains by industry, he said.
