Stories
GST Council to Ease E-commerce Registration, Waive Late Fees, Simplify Procedures on Oct 7
- •GST Council meeting on October 7, 2026, to focus on simplifying GST procedures, not tax rates.
- •Small businesses with up to INR 5 crore turnover filing on time may get late fee relief.
- •General penalty could be reduced from INR 25,000 to INR 10,000, with separate rules for non-fraudulent mistakes.
- •Proposals to simplify GST registration, amendment, and cancellation processes for businesses.
- •Changes expected in Input Tax Credit (ITC) rules for capital goods and addressing ITC issues due to supplier non-filing.
Key Questions Answered
The upcoming GST Council meeting will focus on simplifying procedures rather than changing tax rates. Proposals include waiving late fees for timely-filing businesses with an annual turnover of up to INR 5 crore, reducing general penalties from INR 25,000 to INR 10,000, and establishing separate rules for mistakes made without any intention of fraud or tax evasion.
Proposed changes aim to prevent capital from being tied up by adjusting GST paid on capital goods against future tax liabilities. Additionally, the council is considering a practical solution so that honest buyers do not lose their ITC simply because a supplier fails to file returns on time.
The meeting will review proposals to simplify registration and amendment processes, automate changes, and ease registration cancellations for small businesses. Furthermore, discussions will cover categorizing permanent transfers of Intellectual Property Rights as services and potentially including metro rail networks in the e-way bill system.
