On 8 October 2026, the 57th GST Council chose process over rates. Within three weeks, CBIC turned its recommendations into law through notifications dated 26 and 27 October 2026, mostly effective from 1 November 2026. The theme running through all of them: faster refunds, fewer officer delays, and tighter checks where leakage has been highest.

Cash flow and compliance

1. Discounts without pre-agreement

Notification 03/2026-CT — Post-sale discounts now reduce taxable value through a credit note, provided the buyer reverses the corresponding ITC. There is no longer any need to agree them upfront or link them to specific invoices. A significant win for FMCG, pharma and retail schemes.

2. Refunds in three working days

Notifications 03/2026-CT and 05/2026-CT — The 90% provisional refund now covers inverted duty claims. Acknowledgement must come within 10 days, down from 15, and the portal issues the provisional order within three working days. The ₹1,000 minimum has been dropped for exports made on payment of IGST.

3. Bigger inverted duty refunds

Notification 05/2026-CT — Input services now count in the Rule 89(5) formula, and capital goods join them from 1 April 2027. The 1.5x cap on export turnover has been removed.

4. E-invoices for RCM and service imports

Notification 04/2026-CT, effective 1 January 2027 — Taxpayers already covered by e-invoicing must generate IRNs for RCM purchases from unregistered persons and for the import of services.

Registration and credit

5. Register through a marketplace warehouse

Notification 05/2026-CT, Rule 14B — Online sellers can register in another State using an e-commerce operator's warehouse, provided B2B output tax stays within ₹2.5 lakh a month and the operator consents.

6. Deemed approvals and auto-cancellation

Notification 05/2026-CT — Core amendments are deemed approved if the officer does not act within 15 days. From 1 April 2027, the portal will suspend and cancel non-filers, with revocation possible within 180 days.

7. ITC blocking you can challenge

Notification 05/2026-CT, effective 1 April 2027 — Blocks under Rule 86A now need a formal order in DRC-26, lapse after one year, and can be contested through DRC-27.

Rates and sectors

8. App deliveries at 5%

Notifications 06/2026-CT(R) and 09/2026-CT(R) — Delivery through e-commerce platforms drops from 18% to 5% without ITC, payable by the platform under section 9(5). Courier services stay at 18%.

9. Hotels, caterers and EVs

Notification 06/2026-CT(R) — Hotels and caterers at 5% can claim same-line ITC, capped at 2.5% CGST. EV transport and rentals may choose 5% with limited ITC or 18% with full ITC. E-bicycles now count as EVs.

10. Scrap trade under the scanner

Notifications 04/2026-CT(R), 06/2026-CT and 07/2026-CT — Used cooking oil, plastic, tyre and e-waste scrap move to RCM. Their suppliers lose the registration exemption, and buyers must deduct TDS, with metal scrap included.

11. Relief for farmers

Notification 02/2026-CT(R) — Retreaded tractor tyres fall from 18% to 5%. Organic fertilisers, including seaweed bio-stimulants, now sit clearly at 5%.

12. New exemptions

Notifications 07/2026-CT(R) and 08/2026-CT(R) — Seat-share helicopter travel in the North-East and from Bagdogra, and government grants of toll rights, are exempt. The RCM entry for vehicle renting has been aligned with the 18% rate.

Still waiting

Four changes need amendments to the Act itself and will most likely come through the next Finance Bill: removing arrest powers, a ₹5 crore prosecution threshold, fewer blocked credits, and the fix to section 13(3)(a) of the IGST Act.

Your checklist

• Review discount and credit-note processes before 1 November 2026

• Add input-service ITC to inverted duty refund claims

• Apply RCM and TDS on scrap purchases

• Upgrade your ERP for RCM e-invoicing before 1 January 2027

Most of this is already in force. The two dates worth putting in the diary now are 1 January 2027 for RCM e-invoicing and 1 April 2027 for capital goods in refund claims, Rule 86A orders, and auto-cancellation of non-filers.