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GST Council keeps rates unchanged, cuts refund acknowledgement to 10 days; plant and machinery refunds from April 2027
Our read
The 10-day acknowledgement and the 1 November input services refunds are likely to be implemented broadly on schedule, but the cash relief for inverted-duty retailers will arrive gradually, because plant and machinery refunds only begin on 1 April 2027 and are spread over 60 months.
For operators
Rates are unchanged, so shelf pricing stays as is; you can now claim ITC on free samples and on destroyed expired stock, and refund acknowledgements arrive in 10 days instead of 15, so update your claim and cash-flow calendar.
Watch
Publication of the notifications or circulars implementing the 10-day acknowledgement and the 1 November input services refund start
The report
The GST Council's 57th meeting in 2026 kept GST rates unchanged and cut the refund acknowledgement timeline to 10 days from 15 days. It expanded Input Tax Credit relief to free samples and expired stock destruction, and deferred ITC on motor vehicles.
Reported figures
From the report. Source details below
| Prosecution threshold proposed: | Rs 5 crore from Rs 1 crore |
|---|---|
| Refund claims sanctioned via risk assessment: | 90% |
| Eligible registration amendments auto-approved: | Upto 65% |
| Small B2C annual return turnover limit: | Rs 5 crore |
| Inverted duty input services refund start: | 1 November 2026 |
| Inverted duty plant and machinery refund start: | 1 April 2027 |
Also in the report
- Low-risk registration auto-approval: within three working days
What to watch next
- GST portal updates showing refund acknowledgements actually issued within 10 days rather than 15
- A rise in deficiency memos or refund rejections after the faster acknowledgement window starts
- Draft legislative amendment text fixing the Rs 5 crore prosecution threshold
- Retail company disclosures citing refunds received or lower blocked ITC after 1 November
Likely next moves
Our read of what comes next — analysis, not reported by the source.
- The central tax administration is likely to issue circulars or notifications that turn the 10-day refund acknowledgement and the new ITC relief into operational rules.
- Retailers and consumer-goods companies with inverted duty structures are likely to prepare refund claims for input services ahead of 1 November.
- Industry bodies and tax advisers are likely to press the Council to bring forward the 1 April 2027 start for plant and machinery refunds, or to shorten the 60-month spread.
- Expect the Council to return to ITC on motor vehicles at a later meeting, since it was deferred rather than decided.
- The government is likely to take the Rs 5 crore prosecution threshold, up from Rs 1 crore, into the legislative or rule-making process, and enforcement officers may need fresh guidance on it.