GST Council
GST Council is easing compliance for retail: its 57th meeting set transport of online-order goods at a uniform 5% and lifted the prosecution threshold from ₹1 crore to ₹5 crore (Digit, 10 Oct). Mobile phone GST stays at 18% and no MDR decision was taken (Digit).
What it means Small e-commerce sellers and FMCG retailers gain working capital and simpler multi-state operations.
Latest moves
Our read of each move first, where we have one; what the report said is marked Reported.
- Reported: In diligence, model the 5% GST on unregistered-rider delivery against the cash released by ITC refunds, and note that capex-heavy targets only get capital goods refunds from 1 April 2027, spread over 60 months.Reported: The GST Council clarified a 5% GST rate on e-commerce delivery by unregistered riders and recommended input-services ITC refunds from 1 November. Capital goods ITC refunds, spread over 60 months, start 1 April 2027.Watch: Official notification or circular on the refund rules issued before 1 November.
- Reported: GST Council recommends limited input tax credit for hotels up to ₹7,500 a day, restaurants, outdoor catering and gyms; no rate cutReported: Watch:
Background
From 10 stories, the newest dated 13 Oct 2026. Summary written 16 Oct 2026.
The GST Council is the body whose decisions and recommendations shape India's goods and services tax rules, including those that apply to retailers, e-commerce sellers, hotels, restaurants and payment providers. [1] source: Digit[2] source: CNBC-TV18
Show 3 more paragraphs and 10 sources
Its 57th meeting was held on October 8, with Finance Minister Nirmala Sitharaman speaking on its outcomes. [2] source: CNBC-TV18[3] source: CNBC-TV18 The Council kept GST on mobile phones at 18 per cent. [1] source: Digit It took no decision on the proposed UPI merchant discount rate (MDR), and Sitharaman said deferring the 15 October rollout is not for the Council to decide. [3] source: CNBC-TV18
At the October 2026 meeting the Council recommended a flat 5% GST without input tax credit on e-commerce delivery. [4] source: The Hindu BusinessLine It approved letting sellers with input tax credit claims of up to Rs 2.5 lakh a month use platform warehouses as a place of business in other states. [5] source: Financial Express It recommended spreading refunds of accumulated input tax credit on capital goods over 60 months, with input-services refunds starting 1 November 2026 and capital-goods refunds on 1 April 2027. [6] source: Indian Express It lifted the prosecution threshold to Rs 5 crore from Rs 1 crore, with process reforms effective 1 April 2027. [7] source: Financial Express It backed an optional annual-return, quarterly-payment scheme for B2C-only taxpayers with turnover up to ₹5 crore. [8] source: The Hindu BusinessLine It recommended limited input tax credit for hotels up to ₹7,500 per unit per day, without a GST rate cut. [2] source: CNBC-TV18
Free Press Journal Business reported that B2C e-invoicing will start on a voluntary basis from April 1, 2027. [9] source: Free Press Journal Business The All India Gem and Jewellery Domestic Council welcomed the reforms. [10] source: ET Retail
Sources
- GST Council takes no call on UPI MDR; deferment not its decision to make, says Sitharaman
- GST Council recommends flat 5% GST without credit on e-commerce delivery, plus e-way bill rationalisation
- GST Council clears process reforms from 1 April 2027, lifting the prosecution threshold to Rs 5 crore
- GST Council backs annual-return, quarterly-payment option for B2C-only taxpayers with turnover up to ₹5 crore
Questions about GST Council
What is the latest on GST Council in Indian retail?
At its 57th meeting on October 8, 2026, the GST Council recommended a flat 5% GST without input tax credit on e-commerce delivery, ending tax differences based on whether platforms or sellers arranged the delivery. [2] source: CNBC-TV18[4] source: The Hindu BusinessLine
More stories about GST Council
- India’s August GST collections rise 14.8% to nearly ₹2 lakh crore
- Kolkata to host 57th GST Council meet next month; GST 2.0 reforms on table
Stories that mention GST Council
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GST Council is named in these stories but is not their subject.