CMA Rahul A. Chincholkar outlines key recommendations of the 57th GST Council Meeting, including proposed changes to Input Tax Credit, refunds, registration and prosecution provisions.
India’s Goods and Services Tax (GST) framework has undergone significant regulatory development since its introduction in July 2017. With implications spanning manufacturing, trade, services and financial management, GST policy changes remain important for businesses managing tax compliance, working capital and supply chain operations.
The 57th GST Council Meeting, held in New Delhi on 8 October 2026 under the chairpersonship of Union Finance Minister Nirmala Sitharaman, addressed several taxpayer concerns and proposed administrative reforms. ACMA Western Region organised a webinar on the meeting’s outcomes on 21 October 2026, featuring CMA Rahul Anant Chincholkar, B.Com., FCMA, a practising cost accountant with over a decade of experience in indirect taxation and cost accounting.
A key recommendation concerned the withdrawal of arrest powers under Section 69 of the Central Goods and Services Tax Act. The Council recommended raising the prosecution threshold under GST from ₹1 crore to ₹5 crore and reducing the general penalty from ₹25,000 to ₹10,000. These proposals seek to address enforcement and procedural concerns, subject to the relevant statutory amendments and notifications.
Input Tax Credit (ITC) formed another significant area of focus, particularly cases where suppliers fail to file returns or fulfil statutory obligations. The webinar highlighted Section 16(2)(c) of the CGST Act, the importance of purchase orders, tax invoices, payment records and proof of goods receipt, along with differing judicial decisions concerning genuine recipients. The Council’s recommendation to constitute a committee of officers to review such cases was included, with a report expected within three months, as stated during the webinar.
Refund measures featured among the other key recommendations. The Council proposed reducing the acknowledgement period for refund applications from 15 days to 10 days. Recommendations concerning refunds under the inverted duty structure included the proposed eligibility of ITC relating to input services effective 1 November 2026. The proposed treatment of capital goods credit through a 60 month distribution mechanism, with a proposed commencement date of 1 April 2027, was covered as well. These measures have implications for accumulated credit, refund administration and working capital planning.
Registration and compliance reforms included standardised documentation, improvements to registration applications, automated amendments in specified circumstances and simplified cancellation procedures subject to prescribed conditions. Proposals for common standards governing GST notices and proceedings, alongside administrative processes using technology, featured among the measures intended to reduce procedural burdens.
The webinar explored industry-specific matters involving second-hand motor vehicles, Goods Transport Agency provisions, exemptions, appeals and the movement of goods. Other topics included sublimation paper, toys, seaweed extract based biostimulants, motor vehicle classification and the interception of goods during transit. The potential treatment of ITC relating to expenses such as spare parts, repairs, technology, rent and advertising for second hand motor vehicles was considered, subject to applicable statutory provisions.
Cross-border digital advertising was another area of discussion, particularly the GST implications of services purchased through international platforms. Reference was made to Section 13 of the Integrated Goods and Services Tax Act concerning the place of supply of services. The applicable treatment, including the potential relevance of the reverse charge mechanism, depends on the nature of the service, contractual arrangements and governing statutory provisions.
The webinar was led by CMA Rahul Anant Chincholkar, whose professional work includes GST consulting, cost audits, internal audits, preventive GST audits, departmental notices and the development of internal controls and process manuals. He has trained more than 2,000 participants through professional learning programmes and has academic associations with Savitribai Phule Pune University and Brihan Maharashtra College of Commerce. His professional affiliations include committee activities at the Pune Chapter of the Institute of Cost Accountants of India and the Indirect Tax Committee of the Mahratta Chamber of Commerce, Industries and Agriculture.
ACMA Western Region’s initiative provided industry professionals with an opportunity to understand the potential implications of the Council’s recommendations for business operations and tax administration. As the proposals progress towards implementation, businesses will need to track the relevant statutory amendments and notifications before making changes to their compliance practices. Such industry-focused programmes support informed decision making as India’s GST framework evolves.
For more details, visit: www.acma.in
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