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57th GST Council Recommends Late Fee Waiver and End of GST Arrests

Written by Timo Vikson • Published on 19 Oct 2026 • Read time minutes

The 57th GST Council met on 8 October 2026 and recommended a set of process reforms, published in a PIB release the same day. These are recommendations only. They take effect when CBIC issues notifications or Parliament amends the CGST Act, and none had been notified as of 19 October 2026.

What the Council recommended

  • No late fee on a delayed GSTR-3B for taxpayers with turnover up to ₹5 crore in the previous year, if filed by the end of the month in which it was due.
  • No show cause notice where the tax involved is below ₹10,000.
  • A cut in the maximum general penalty under section 125 from ₹25,000 to ₹10,000.
  • Withdrawal of arrest powers under section 69, and a prosecution threshold of ₹5 crore instead of ₹1 crore.
  • Automatic acceptance of registration amendments, except Principal Place of Business changes.
  • Fewer blocked credits, including outdoor catering, health and life insurance and free samples.
  • An optional annual-return, quarterly-payment scheme (ARQP) for B2C-only businesses up to ₹5 crore, approved in principle only.

What to do

Nothing changes yet. Keep filing on the current due dates, because today’s late fees and penalties apply until the changes are notified. Our input tax credit guide explains the current blocked-credit rules.

Sources: PIB release, 8 October 2026, Taxguru.

About the author

Timo Vikson is an Estonian-Indian investor and entrepreneur, notably serving as the Co-Founder of LEI Register - biggest LEI (legal entity identifier) provider globally and in India. He is now the head of WeeDoo.in, an Indian business intelligence and data analytics organization that provides information on business activities in India.

With experience across multiple industries, Vikson is committed to improving the Indian business landscape through transparency, innovation, and data-driven solutions.