RECENT DEVELOPMENTS IN GOODS AND SERVICES TAX

BMI, a Fitch Company has raised India's growth forecast for FY 2027 to 7.5% from 6.8% due to sustained industrial growth but has cautioned about oil prices, policy rate hikes and inflationary concerns. At the same time, it has lowered the projection for FY 2028 to 6.3% from 6.5%.

57th GST Council held on 8th October, 2026 focused on tax reforms leading to ease of doing business and compliances. Some of the changes will require amendment in law and rules and as such its implementation may take some time or could even be from April, 2027. For example, in case of recommendations on doing away with arrest provisions, rules may be framed to deal with existing arrest cases.

CBIC also intends to make invoice management system mandatory w.e.f. 01.04.2027 which will facilitate digital invoices matching leaving minimum scope for human errors.

Few states (e.g. Rajasthan, Haryana) have issued instructions for sending intimations of show cause notices and demand orders by proper officers by post, in addition to portal in view of various judicial pronouncements underlying the necessity of communicating the notices and orders in GST law, also by post. A welcome step.

Mandatory Postal Intimation of SCNs and Demand Orders of Rs. 1 Lakh or More - Rajasthan SGST

The Chief Commissioner of State Tax, Rajasthan, exercising powers under Section 168 of the RGST Act, 2017, has directed that Show Cause Notices in FORM GST DRC-01 and Demand Orders in FORM GST DRC-07, involving a total demand of Rs. 1 lakh or more, shall additionally be sent through registered post/speed post with acknowledgement due. The key highlights are as follows:

• Applicability: Notices and orders issued under Sections 73, 74, 74A or 122 of the RGST Act/ CGST Act and the relevant provisions of the IGST Act and GST (Compensation to States) Act.
• Time limit: Postal intimation must be dispatched within 15 days of issuance of the notice or order.
• Address: The taxpayer's last known place of business or residence, or that of the authorised representative, as applicable.
• Purpose: Postal communication is required for intimation only, in addition to making the notice or order available on the GST common portal.
• Deemed service: Receipt shall be deemed to occur on the date the notice or order is made available on the GST common portal, in accordance with Section 169(1)(d) read with Section 169(2).
• Monitoring mechanism: The Proper Officer shall maintain a dispatch register and monitor it fortnightly. The Additional Commissioner of State Tax of the district shall supervise and countersign the registers monthly.

(Source: Instructions No. F.17 (134) ACCT/GST/2017/PART-II dated 12.10.2026

issued by Chief Commissioner, State Tax, Government of Rajasthan, Jaipur)

Mandatory Postal Intimation of SCNs and Demand Orders - Haryana SGST

The Haryana Excise and Taxation Department, vide Instruction No. 02/2026/GST-II dated 01.06.2026, has directed that specified GST notices and demand orders already served through the GST portal must additionally be communicated through registered post/speed post with acknowledgement due. The key highlights are as follows:

• Covered documents: Show Cause Notices in FORM GST DRC-01 and Demand Orders in FORM GST DRC-07 issued under Sections 73, 74, 74A or 122 of the HGST/CGST Acts and relevant provisions of the IGST Act and GST (Compensation to States) Act.
• Postal intimation: The Proper Officer must send the documents to the taxpayer or authorised representative at the last known business or residential address.
• Time limit: Postal intimation must be dispatched within 15 days of issuance of the notice or order.
• Deemed service: The date of deemed receipt remains the date on which the notice or order is made available on the GST common portal under Section 169(1)(d) read with Section 169(2).
• Monitoring: Ward-wise dispatch registers must be maintained and monitored fortnightly, with monthly supervision and countersignature by the district Deputy Commissioner of State Tax.
• Effective date: 1st June, 2026. The instruction supersedes Instruction No. 01/2026/GST-II dated 23.05.2026.

(Source: Instruction No. 02/2026/ GST-II dated 01.06.2026

issued by Excise & Taxation Department, Haryana)

GSTN Introduces New e-Invoicing Supply Types for Recipient-Generated Self-Invoices under RCM

GSTN has introduced two new supply types-RCMDOM and RCMIMP-to facilitate reporting of recipient-generated self-invoices under the Reverse Charge Mechanism (RCM). The key highlights are as follows:

• RCMDOM: For self-invoices relating to specified domestic supplies received from unregistered persons, where GST is payable by the registered recipient under RCM.
• RCMIMP: For self-invoices relating to the import of services from suppliers located outside India, where GST is payable under RCM.
• Applicability: The facility is intended for registered taxpayers having Aggregate Annual Turnover (AATO) of Rs. 5 crore or more, subject to applicable statutory provisions and government notifications.
• IRN Generation: Eligible taxpayers can report such self-invoices through authorised Invoice Registration Portals (IRPs) using the appropriate supply type and obtain an Invoice Reference Number (IRN), subject to prescribed validations.
• Sandbox Availability: The functionality has been implemented in the sandbox environments of all six authorised IRPs for testing and system integration.
• Implementation Timeline: The production rollout date and commencement of reporting requirements have not yet been announced. Detailed technical specifications and validation rules will be issued separately by NIC IRP-1.

(Source: GSTN Advisory dated 16.10.2026)

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