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Recent GST and customs developments bring changes to tax compliance, input tax credit (ITC), refunds, exports and dispute resolution.
The October 2026 edition of GST Compendium covers key recommendations from the 57th GST Council meeting, legislative amendments and significant judicial pronouncements. It also examines the omission of Rule 96(10), along with developments in direct taxes and other indirect tax matters. The compendium provides businesses and tax professionals with an overview of these developments and their implications for tax positions, compliance requirements and business operations.
Key highlights of the GST Compendium October 2026
- Important updates/announcements: The GST Council has inter alia recommended wide-ranging legislative and procedural reforms aimed at simplifying GST administration, improving liquidity, rationalising enforcement, and facilitating ease of doing business. Key proposals include relaxing the ITC restrictions on specified goods and services, expanding refund eligibility, automating refund processing, and amending provisions relating to export transactions.
- Key judicial pronouncements: The Punjab and Haryana High Court (HC) has affirmed the constitutional validity of Section 16(2)(c) of the CGST Act 2017, which makes ITC contingent upon actual payment of tax to the Government. However, the HC held that the provision cannot be invoked in isolation or applied mechanically to deny ITC merely because a supplier has failed to deposit tax or its registration has subsequently been cancelled.
- Significant updates in indirect taxes: The GSTN has enabled taxpayers to file appeals when the demand order shows a nil or zero amount, but the underlying liability remains in dispute. The GST portal validation previously restricted the filing of an appeal against such orders. The CBIC has prescribed seven document checklists to ensure mandatory regulatory compliance before granting out-of-charge for PGA-facilitated imports of cosmetics, drugs and medical devices, including related raw materials and components.
