TaxTMI 
TaxTMI 
12 Oct 2026 
After going through all the proposals which were approved by the GST Council on 08/10/2026, it appears that not just one or two but several initiatives are excellent. Some proposals are effective from 01/11/2026. Some from 01/04/2027. Others from a date to be notified later. Irrespective of the date of implementation, the proposals are well thought of with Bonafide intentions to help the taxpayer as well as to reduce the litigation. The move on reduction of maximum penalty amount from Rs. 25,000 to Rs. 10,000 under section 125, partial relief proposed under section 17 (5), initiatives on removing the obstructions during movement of goods are all most welcome measures from the GST Council.
This is only due to the improper invocation of 125, 17(5) as well as 129 by the field formation during 01/07/2017 till 07/10/2026 which forced the Government to bring in these proposals before the GST Council, which is the most appropriate forum for any amendment in GST law. Let the required notifications as well as circular be issued for more clarity on the proposals approved. However, the message from the 57th GST Council meeting is loud and clear. The Invoice Management System (IMS) is a good initiative which is now getting legal recognition. The changes pertaining to refund are excellent initiatives from the Union Finance Minister.
Though Union Finance Minister claims that most of issues are addressed, it is certainly partly true as we can not expect more than what we got in one day meeting. It is true that there are several unresolved issues as on date but it is also true that the Government is now highly responsive. Considering the welfare proposals as listed below for quick recapitulation, it is difficult to list them in any order of priority as each and every proposal is a highly beneficial one. Similarly, each and every person whomsoever is connected, even remotely with the GST Council deserves appreciation for the laudable efforts in resolving several issues in one go.
| No | Proposal approved by the GST Council in their 57th meeting on 08/10/2026 |
| 1 | Recommended scrapping the arrest powers previously held by tax officers to prevent coercive tax practices. |
| 2 | Raised the monetary limit for launching criminal prosecution against tax offenders fivefold, from Rs. 1 crore to Rs. 5 crore. |
| 3 | Reduction of various penalty including under section 125 |
| 4 | Setting a minimum threshold limit of 10,000 for issuing a SCN |
| 5 | Detailed circular to be issued on adjudication guidelines |
| 6 | Removal of curbs during movement of goods with proper documents |
| 7 | Relaxations (though minor) in Section 17 (5) ITC denial |
| 8 | Quarterly Payment Annual return initiatives |
| 9 | Efforts to minimize GST return differences |
| 10 | Legal recognition of Invoice Management System. |
The other side of the same story: The setting up of the GSTAT was abnormally delayed. It has not happened now due to the generosity of the Central Government but only due to the intervention of the Supreme Court in the matter of Team Computers Private Limited Versus Union of India & Ors. - 2024 (12) TMI 875 - SC Order wherein in para 6 the Supreme Court observed "6. We would like to first know at the earliest why the Goods and Services Tax Appellate Tribunal has not been made functional till this date.
7. We want a report in the aforesaid regard by the next date of hearing".
Till today, several hearings took place but final order is yet to come. Only after 13/12/2024, the setting of the various benches of GSTAT was given the due importance and made operational in September 2025. Though the benches have started passing the final orders, the required infrastructure is not in place. The supporting officers are not yet fully appointed. Lot of decisions are coming from various High Courts on several GST matters and it is practically not possible to overcome all the observations of the High Courts. The strategy adapted now in the 57th GST Council is pro-active to avoid severe criticism by Supreme Court later. The only exception is on single SCN for multiple financial years where there are contrary orders and in order to settle this issue Government has decided to allow the issuance of such SCN by necessary clarifications/ amendments.
Way Forward: The first eight years of GST from 01/07/2017 till 21/09/2025 were a difficult as well as hard times for the taxpayers as frivolous show cause notices were not uncommon. It is only on 22/09/2025, the Government of India reversed the trend by proving that the Government is responsive by way of several good initiatives approved in the 56th GST Council meeting. The 57th GST Council meeting is no exception and the taxpayers express their heart felt gratitude to the GST Council for their coming forward in process simplification which is really the need of the hour.
Key expectation from GST Council: Before concluding, on behalf of the entire taxpayers as well as common citizen of India, the following request are submitted for appropriate consideration.
| No | Request | Benefits to Country and Taxpayer |
| 1 | Increase the threshold limit for GST exemption. | The Revenue shall go up as focus of collection is on reduced number of taxpayers with higher potential. What we actually need?. Huge taxpayer only in numbers or quality taxpayers with improved collection? |
| 2 | Abolish section 17 (5) (d) | This shall reduce the sale price of residential apartments/homes due to avoidance of cascading effect of GST. The Government is a gainer as litigation is bound to come down. |
| 3 | Infrastructure | The benches of GSTAT need own building with all latest amenities and support staff as early as possible. The number of appeals may cross 2 lakhs in 2027. |
| 4 | Training to GST officials | All junior level officers attached to various States under SGST administration need proper training. The GST and Indirect Taxes Committee of the Institute of Chartered Accountants of India may be approached in this connection. |
| 5 | First Appeal | There are several appeals pending all over India at first appeal level. As GSTAT is taking care of orders passed by first appellate authority, the cases pending before first appellate authority need disposal in a much faster manner. |
| 6 | Council Meetings | It is desirable to have quarterly meetings in all the financial years to address the issues then and there. |
| 7 | Imposition of cost | All orders which are quashed at High Court or Supreme Court deserve imposition of cost on the authority whose order is quashed. |
Out of the seven requests, even if they are addressed in a phased manner over the period of next two years, the same shall be a win -win situation for all stakeholders.