53rd GST Council meeting outcomes, e-invoicing threshold reduced to ₹5 crore, GSTR-1 deadline extension, amnesty scheme for annual return non-filers, new rate changes, and important CBIC circulars.
Effective July 1, 2026. All businesses with aggregate turnover exceeding ₹5 crore must generate e-invoices. Previously ₹10 crore. Affects approximately 8 lakh additional taxpayers.
GoM recommends reducing GST on term life insurance from 18% to 5%. Health insurance for senior citizens (65+) proposed at 5%. Final decision deferred to June council meeting.
Compensation cess on luxury goods and sin goods (tobacco, automobiles, coal, aerated beverages) extended from March 2026 to September 2026 to clear pending state compensation dues.
One-time amnesty for FY 2017-18 to FY 2021-22 annual return non-filers. Late fees capped at ₹20,000 per return if filed before August 31, 2026. Regular late fee is ₹200/day.
RCM applicability clarified for B2B metal scrap transactions. Registered buyers must pay GST under RCM when purchasing from registered dealers. Self-invoicing mandatory.
| Item / Service | Old Rate | New Rate | Effective | Category |
|---|---|---|---|---|
| Fortified rice kernels | 18% | 5% | May 1, 2026 | Reduction |
| EV charging stations (services) | 18% | 5% | May 1, 2026 | Reduction |
| Online gaming (real money) | 28% | 28% | No change | Status Quo |
| Popcorn (pre-packaged, salted) | 12% | 12% | Clarified | Clarification |
| Used vehicles by businesses | 18% (margin) | 18% (margin) | Clarified | Clarification |
Due date extended from April 13 to April 18, 2026, for QRMP filers due to portal maintenance scheduled for April 11-13.
Auto-generated GSTR-2B will now be available on the 14th of the month (was 12th). Gives 2 extra days for suppliers to file GSTR-1.
CBIC Circular 225/2026: ITC reversal for non-payment within 180 days must be reported in Table 4(B)(2) of GSTR-3B. Auto-population will begin from May 2026.
From April 1, 2026, businesses with turnover above ₹5 crore must report 6-digit HSN codes in GSTR-1 (was 4-digit). Portal validation enabled.
E-commerce operators must now report supplies made through their platform in a separate Table 14. Auto-populated from TCS-liable GSTR-8 data.
CBIC clarifies that cross-charging of common services between branches (distinct persons) must be done through ISD from April 2025 onwards. Direct ITC distribution without ISD is no longer permissible.
Detailed guidelines on how ITC reversal amounts will be auto-populated. Taxpayers must verify and adjust before filing. Mismatch beyond 10% will trigger a system alert.
DRC-01B process updated. Officers can now issue notices for ITC mismatch exceeding ₹25 lakh (was ₹50 lakh). Response window remains 30 days.
Official notification implementing 53rd Council recommendation. Effective July 1, 2026. Taxpayers must register on IRP portal and begin e-invoice generation from the effective date.
July 1, 2026. Businesses with aggregate annual turnover exceeding ₹5 crore in any FY from 2017-18 onwards must generate e-invoices through registered IRP portals for all B2B and export invoices.
Not yet. The GoM has recommended reducing GST on term life insurance to 5% and health insurance for senior citizens to 5%, but the GST Council has deferred the final decision to the next meeting (expected June 2026).
Non-filers for FY 2017-18 to 2021-22 can file with a capped late fee of ₹20,000 per return (₹10,000 CGST + ₹10,000 SGST). Must file before August 31, 2026. This is significantly lower than the regular ₹200/day penalty.
From April 2025 onwards (clarified in April 2026 circular), businesses with multiple registrations must distribute common input service credits through ISD mechanism only. Direct cross-charging without ISD registration is not permitted.
Yes, the portal will validate HSN codes from April 2026. If you enter fewer than 6 digits for invoices where your turnover exceeds ₹5 crore, the GSTR-1 will be rejected with an error. Ensure your billing software is updated.