GIST OF NEW NOTIFICATIONS IN GST (PART 1)

CBIC has issued several Notifications, Circulars and Instructions post 57th GST Council meeting held on 8th October, 2026 to implement its decisions. Notifications Nos. 3 to 7 (Central Tax) and Notification Nos. 2 to 10 Central Tax (Rate) have since been issued on 26/27 October, 2026 with corresponding Notifications in UT / IGST laws. Circular No. 257 to 266 have also been released to explain or clarify certain changes and simplified understanding of law / procedures.

CBIC has issued the following Notifications 03 to 07/2026- Central Tax to make necessary changes for implementation of recommendations of 57th GST Council meeting including amendment in GST Rules, 2017

Gist of New Notifications No. 03 to 07/2026-Central Tax

(A) Effective Date of Amendments to Sections 15, 34 and 54 of the CGST Act, 2017

The CBIC has appointed 01.11.2026 as the date on which Sections 153 to 155 of the Finance Act, 2026 shall come into force, introducing the following amendments:

1. Post-Supply Discounts - Section 15(3)(b)

Post-supply discounts shall be excluded from the taxable value where the supplier issues a credit note under Section 34 and the recipient reverses the attributable ITC.

2. Credit Notes - Section 34(1)

The provision expressly recognizes discounts referred to in Section 15(3)(b) as a ground for issuing credit notes, aligning the credit note mechanism with the revised treatment of post-supply discounts.

3. Refunds - Section 54

• Provisional refund: The facility of provisional refund of up to 90% is extended to refunds of unutilised ITC arising from an inverted duty structure.

• Export of goods: The minimum threshold of Rs. 1,000 for refunds of tax paid on exports of goods with payment of tax is removed.

(Source: Notification No. 03/2026-Central Tax dated 26.10.2026)

(B) Expansion of E-Invoicing Coverage under Notification No. 13/2020-Central Tax

The CBIC has amended Notification No. 13/2020-Central Tax dated 21.03.2020, issued under Rule 48(4) of the CGST Rules, 2017.

The amendment expands the scope of e-invoicing to cover the following transactions:

1. B2B supplies - Supply of goods or services or both to a registered person.
2. Export supplies - Supply of goods or services or both for exports.
3. Domestic RCM supplies - Supplies received from an unregistered person where tax is payable by the recipient under the Reverse Charge Mechanism (RCM).
4. Import of services - Services imported from outside India.

Effective Date: 1 January 2027.

The amendment brings specified RCM transactions involving unregistered suppliers and imports of services within the notified e-invoicing framework. Taxpayers covered by the applicable provisions will need to ensure compliance with the prescribed invoicing requirements.

(Source: Notification No. 04/2026-Central Tax dated 26.10.2026)

(C) Amendments to the CGST Rules, 2017

CBIC on the recommendations of the GST Council issued Notification No. 05/2026 - Central Tax dated 26 October 2026, amending the CGST Rules, 2017. The amendments cover registration through e-commerce operator warehouses, amendment and cancellation of registration, suspension and revocation of registration, Input Service Distributor (ISD) provisions, refund computation and processing, electronic credit ledger restrictions, e-way bills and provisional attachment of property.

1. Registration through e-commerce operator warehouses - Rule 14B

A new Rule 14B introduces a registration mechanism for eligible suppliers supplying goods through e-commerce operators (ECOs) required to collect tax at source under Section 52.

The provision permits eligible suppliers to obtain registration in another State or Union Territory by declaring an eligible ECO warehouse as their principal place of business, subject to prescribed conditions, including ECO consent, Aadhaar authentication and verification requirements. The specified monthly output tax liability threshold is Rs. 2,50,000.

The Rule also prescribes procedures for amendment, withdrawal and cancellation of such registration.

2. Amendment of registration - Rule 19

Rule 19 has been substituted to revise the procedure for amendment of registration particulars.

• Applications in FORM GST REG-14 are generally required to be filed within 15 days of the relevant change.
• The Rule prescribes timelines for scrutiny, seeking clarifications, approval and rejection by the proper officer.
• Specified amendments are processed through online validation.
• Changes in legal name and specified changes in the constitution of the business apply across registrations obtained under the same PAN.
• Where a change in constitution results in a change of PAN, fresh registration is required.

3. Cancellation of registration - Rules 20, 21, 21A and 22

• Rule 20: The substituted Rule revises the procedure for cancellation on the taxpayer's request. It prescribes the application requirements, return-compliance conditions, electronic processing in specified cases and examination by the proper officer where required. It also provides a procedure for changing the effective date of cancellation.
• Rule 21: The substituted Rule specifies grounds for cancellation, including prescribed defaults in furnishing returns and non-compliance with Rule 10A concerning bank-account details.
• Rule 21A: With effect from 1 April 2027, the revised Rule provides for suspension of registration during cancellation proceedings and system-based suspension in specified cases of non-compliance.
• Rule 22: Also effective from 1 April 2027, the substituted Rule revises the cancellation proceedings initiated by the proper officer, including the show-cause notice, taxpayer's response and cancellation order.

4. System-based revocation of cancellation - Rule 23A

A new Rule 23A, effective from 1 April 2027, provides for system-based revocation where registration has been deemed cancelled electronically.

Revocation is subject to prescribed conditions, including furnishing pending returns and paying the related dues, where cancellation arose from return defaults. The Rule also prescribes the timeline for furnishing returns due for the period between cancellation and revocation.

5. Amendments relating to ITC and ISD - Rules 36, 39, 54 and 60

The Notification makes amendments to align the Rules with ISD-related ITC distribution:

• Rules 36 and 39: Amendments relating to documentation and distribution of ITC through the ISD mechanism.
• Rule 54(1A): Revises the wording relating to the transfer of ITC on input services attributable to one or more distinct persons to an ISD.
• Rule 60(2): Expressly incorporates the availability of relevant information to the ISD through FORM GSTR-6A.

6. Other amendments to Rules 44, 62, 63 and 83C

• Rule 44: Amendments relating to reversal of ITC in specified circumstances, effective 1 December 2026.
• Rule 62: The specified reference to "April" is replaced with "June".
• Rule 63: The specified reference to "twenty" is replaced with "thirteen".
• Rule 83C: A new provision prescribes the procedure for amendment of GST Practitioner enrolment particulars through FORM GST REG-14, applying Rule 19 with necessary modifications.

7. Electronic credit ledger restrictions - Rule 86A

The amendments to Rule 86A take effect from 1 April 2027.

The revised provisions provide for restrictions on debit of the electronic credit ledger through FORM GST DRC-26. The registered person may file an objection in FORM GST DRC-27, which is to be dealt with by the proper officer through FORM GST DRC-28. The Rule also prescribes the duration of the restriction, including a one-year limit, subject to the specified conditions.

8. Refund-related amendments - Rules 86(3), 89, 90, 91 and 92

The Notification makes several changes to refund procedures and computation:

• Rule 86(3): Links the debit from the electronic credit ledger with the prescribed procedure under Rule 89(3).
• Rule 89: Revises refund application documentation and the order of debit of ITC. It also changes the formula for refund of unutilised ITC under inverted duty structure and introduces provisions concerning capital goods in refund computation.
• Rule 90: Reduces the specified processing timeline from 15 days to 10 days and provides for deemed acknowledgement where the prescribed action is not taken within the stipulated period.
• Rule 91: Provides for system-generated provisional refund orders based on risk identification and evaluation.
• Rule 92: Introduces provisions for system-generated refund orders and revises aspects of refund sanction and payment.

Certain amendments to Rule 89 have separate commencement dates, including 1 December 2026 and 1 April 2027.

9. Other amendments - Rules 138 and 159

• Rule 138: The relevant e-way bill provisions are amended to expressly include the metro railway alongside railways.
• Rule 159: Amendments clarify the use of the relevant parts of FORM GST DRC-22 for dealing with objections relating to provisional attachment.

10. Effective dates for the amendments

(Source: Notification No. 05/2026-Central Tax dated 26.10.2026)

(D) Amendment to Notification No. 5/2017-Central Tax for non-exemption from registration

The Central Government has amended Notification No. 5/2017-Central Tax dated 19.06.2017, under Section 23(2) of the CGST Act, 2017.

The amendment provides that the exemption from GST registration under the said notification shall not apply to persons engaged in the supply of the following goods:

1. Used cooking oil falling under Heading 1518.

2. Waste and scrap of plastics falling under Heading 3915.

3. Waste and scrap of tyres falling under Heading 4004.

4. Metal scrap falling under Chapters 72 to 81.

5. Electrical and electronic waste and scrap falling under Heading 8549.

Effective Date: 1st November, 2026.

Hence, persons dealing in the above-mentioned goods will not be eligible for the benefit of the exemption from GST registration under Notification No. 5/2017-Central Tax and will need to examine their registration requirements under the applicable provisions of the CGST Act, 2017.

(Source: Notification No. 06/2026-Central Tax dated 27.10.2026)

(E) Expansion of the list of specified goods covered under TDS provisions of Section 51 of the CGST Act, 2017

The Central Government has amended Notification No. 50/2018-Central Tax dated 13.09.2018 to revise the list of specified goods for the purpose of Tax Deducted at Source (TDS) under Section 51 of the CGST Act, 2017.

W.e.f. 01.11.2026, the following goods are covered under the amended clause (d), where supplied by one registered person to another registered person:

1. Used cooking oil - Heading 1518.
2. Waste and scrap of plastics - Heading 3915.
3. Waste and scrap of tyres - Heading 4004.
4. Metal scrap - Chapters 72 to 81.
5. Electrical and electronic waste and scrap - Heading 8549.

Impact: The amendment expands the specified-goods category under Notification No. 50/2018-Central Tax for GST TDS purposes. Registered recipients dealing in the above goods should review the applicability of TDS under Section 51 and ensure compliance from 1 November 2026.

(Source: Notification No. 07/2026-Central Tax dated 27.10.2026)

(To be continued....)

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