GST Notification No 05/2026-CT

Based on the 57th GST Council Meeting recommendations, goverment has issued GST Notification No 05/2026-CT dated 26-10-2026.

1. Amendments to Registration Rules under CGST Rules, 2017

Introduction of Simplified GST Registration for Suppliers through E-Commerce Operators – New Rule 14B:The Central Government has inserted Rule 14B in the CGST Rules, 2017, providing an optional simplified GST registration facility for eligible persons supplying goods through Electronic Commerce Operators (ECOs) who are required to collect Tax Collected at Source (TCS) under Section 52 of the CGST Act, 2017.This rule allows a person already registered in one State or Union Territory (Home State) to obtain GST registration under the same PAN in another State or Union Territory where the person has no physical presence, by declaring the warehouse of an ECO as the Principal Place of Business (PPOB).

Eligibility and Conditions for Registration

• The facility is available to eligible registered persons intending to supply goods through ECOs required to collect TCS under Section 52.
• The total output tax liability on supplies to registered persons, comprising Central Tax, State Tax or Union Territory Tax and Integrated Tax, excluding supplies to persons registered under the same PAN, must not exceed ₹2,50,000 per month.
• Further, the ECO must provide consent for declaring its warehouse as the Principal Place of Business.

Application and Registration Procedure

• The applicant must apply in FORM GST REG-01 and provide the GSTIN of the Home State where the applicant has a physical presence.
• The address and details of the ECO’s warehouse must be declared as the Principal Place of Business, while other warehouses of the same or another ECO may be declared as Additional Places of Business (APOB).
• The application will be forwarded to the concerned ECO for consent, which may be provided within seven working days. If consent is not received within the prescribed period, the application will not be processed further.

Aadhaar Authentication and Physical Verification

• After obtaining ECO consent, the application will be forwarded to the jurisdictional officer of the Home State for biometric-based Aadhaar authentication and document verification, if not already successfully completed.
• Thereafter, physical verification of the Principal Place of Business in the Home State will be carried out, if not already completed. Registration will be granted electronically upon successful completion of the prescribed verification process.
• Where authentication or document verification is not completed, the application will not be processed further. If physical verification establishes that the applicant does not conduct business in the Home State, the application will be deemed rejected and intimated through FORM GST REG-05A.
• However, where physical verification is not completed by the proper officer within 30 days from the date of generation of the Application Reference Number (ARN) after successful authentication and document verification, the application will be deemed approved.
• Where the prescribed authentication, document verification and physical verification have already been successfully completed for the Home State registration, registration under Rule 14B will be granted electronically upon receipt of ECO consent. The provisions of Rule 10 will apply mutatis mutandis.

Registration Certificate and Maintenance of Records

• The registration certificate will contain the details of the ECO warehouse declared as the Principal Place of Business, any Additional Places of Business and the Principal Place of Business in the Home State.
• The registered person must maintain the prescribed books of accounts and records under Rule 56 and furnish them whenever required by the proper officer. The ECO must appoint an authorised representative in each State or Union Territory to arrange and provide the information required from persons registered under this rule.
• Further, the registered person will not be required to display the GST registration certificate or GSTIN on the name board at the ECO warehouse, notwithstanding Rule 18.

Amendment of Warehouse Details and Withdrawal of ECO Consent

• Where the address of an ECO warehouse declared as the Principal Place of Business or Additional Place of Business changes, the registered person must apply for amendment in FORM GST REG-14. The amended address will be updated upon obtaining the required ECO consent.
• Where the ECO withdraws its consent, it must intimate the withdrawal on the GST common portal. The registered person may apply in FORM GST REG-14 within 30 days to change the details of the concerned place of business.
• Where an ECO withdraws permission for a warehouse declared as an Additional Place of Business and the registered person fails to apply for amendment within 30 days, that place will be deleted from the registration certificate.
• Changes to registration particulars other than the address of the Principal Place of Business or Additional Place of Business will be amended through FORM GST REG-14 under Rule 19(1).

Deemed Cancellation of Registration

Registration granted under Rule 14B will be deemed cancelled electronically through the GST common portal, with intimation in FORM GST REG-38, in the following circumstances:

• The ECO withdraws permission for the warehouse declared as the Principal Place of Business, or its GST registration, including associated TCS registration, is cancelled, and the registered person fails to apply for the required amendment within 30 days.
• The registration obtained in the Home State is cancelled.
• The ECO’s application for a change in the warehouse address declared as the Principal Place of Business is approved, but the registered person fails to file the required amendment within 30 days.

The relevant provisions of Rule 20(14) to (20) will apply mutatis mutandis to such cancellation.

Withdrawal from the Registration Option

• A person registered under Rule 14B who wishes to withdraw from this option must apply in FORM GST REG-32, providing details of the Principal Place of Business as proof of physical presence, duly signed or verified through an Electronic Verification Code on the GST common portal.
• The prescribed procedures under Rule 14A(5) to (13) will apply mutatis mutandis.
• Further, a person registered in the Home State under Rule 14A must first apply in FORM GST REG-32 to withdraw from that option before applying under Rule 14B.

Additional Restrictions

• A person who has not opted for Aadhaar authentication will not be eligible for registration under Rule 14B, except persons notified under Section 25(6D) of the CGST Act.
• Further, only one registration under Rule 14B against the same PAN will be permitted in a State or Union Territory, notwithstanding Rule 11.

Amendment in GST Registration Particulars – Rule 19 of CGST Rules, 2017

A. Application for Amendment of Registration

• Where there is any change in the particulars furnished in FORM GST REG-01, REG-07, REG-09, REG-10, REG-13, GST CMP-02 or GST PCT-01, the registered person or other concerned person must submit an application in FORM GST REG-14 within 15 days from the date of such change, along with the relevant supporting documents.

B. Amendment in Principal Place of Business

• Where the change relates to the Principal Place of Business, the application and supporting documents will be forwarded to the proper officer for verification. If the application is found to be in order, the proper officer must approve it within 15 days and issue an order in FORM GST REG-15. The amendment will take effect from the date of approval.

C. Clarification and Rejection of Amendment Application

• Where the application is incomplete or requires clarification, the proper officer may issue a notice in FORM GST REG-03 within 15 days. The applicant must submit a reply in FORM GST REG-04 within seven working days.
• If the reply is satisfactory, the officer must approve the application within seven working days and issue FORM GST REG-15. If the reply is unsatisfactory, the application may be rejected through FORM GST REG-05, with reasons recorded in writing.
• Where no reply is furnished within the prescribed period, the application will be deemed rejected and electronically intimated through FORM GST REG-05A.

D. Deemed Approval of Amendment

• Where the proper officer fails to take action within 15 days from submission of the application or within seven working days from receipt of the clarification, the registration certificate will be deemed amended and the updated certificate will be made available on the GST portal, wherever applicable.

E. Amendment for Persons Registered under Rule 14A

• For persons registered under Rule 14A who have not opted to withdraw under Rule 14A(5), changes relating to the Principal Place of Business will be amended upon submission of the application and completion of the required online validation on the GST portal.
• Amended certificate shall be made available to the registered person on the common portal. (This will applicable from 01-12-2026).

F. Amendment of Other Registration Particulars

• Changes relating to particulars other than the Principal Place of Business will be amended upon submission of FORM GST REG-14 and completion of the required online validation on the GST portal.
• The amended registration certificate will be made available electronically, wherever applicable.

G. Common Changes Across Multiple GST Registrations

• Changes relating to the legal name of business or addition, deletion or retirement of partners, directors, Karta, Managing Committee, Board of Trustees, Chief Executive Officer or equivalent persons responsible for day-to-day affairs will apply to all GST registrations obtained under the same PAN in any State or Union Territory under the relevant Chapter.

H. Amendment of Mobile Number and Email Address

• Any change in the mobile number or email address of the authorised signatory will be permitted only after online verification through the GST portal, in accordance with Rule 8(2).

I. Change in PAN Due to Change in Constitution of Business

• Where a change in the constitution of business results in a change in PAN, the registered person must apply for fresh GST registration.

Simplified and Automated GST Registration Cancellation Procedure – Rule 20

• The Central Government has substituted Rule 20 of the CGST Rules, 2017, introducing a revised procedure for cancellation of GST registration on the request of a taxpayer under Section 29(1) of the CGST Act, 2017 which will be applicable from 01-11-2026.
• The new rule provides for electronic cancellation through the GST common portal, subject to prescribed conditions, along with procedures for verification, deemed approval and revision of the effective date of cancellation.

A. Application for Cancellation – FORM GST REG-16

• A registered person seeking cancellation of GST registration must submit an application in FORM GST REG-16 within 30 days from the occurrence of the event warranting cancellation.
• The application must include details of inputs held in stock, inputs contained in semi-finished or finished goods and capital goods held in stock on the day immediately preceding the application date or the proposed effective date of cancellation, as applicable.
• The related tax liability, payments made against such liability and relevant supporting documents must also be provided.However, the 30-day time limit will not apply in the event of the death of a sole proprietor.

B, Mandatory Filing of Returns Before Cancellation Application

• Before applying for cancellation, the registered person must furnish all returns, including FORM GST CMP-08, wherever applicable, required to be filed on or before the application date for periods ending on or before the proposed cancellation date.
• Further, where FORM GSTR-1 or Invoice Furnishing Facility (IFF) has been furnished for any tax period, the corresponding FORM GSTR-3B must also be filed before submitting the cancellation application.

Illustration 1: Where a taxpayer applies for cancellation on 13 July 2026, FORM GSTR-3B for May 2026 must have been filed.

Illustration 2: Where a taxpayer has furnished GSTR-1 for June 2026 on 11 July 2026, GSTR-3B for June 2026 must also be filed before applying for cancellation.

C. Filing of Remaining Returns and Suspension of Registration

• After submitting the cancellation application, the registered person must furnish the remaining returns, including FORM GST CMP-08, wherever applicable, for the period up to the date of application or the proposed effective date of cancellation, as applicable, within their respective due dates.
• Further, upon submission of the application, the GST registration will remain suspended until completion of the cancellation proceedings.

D. Automatic Cancellation through GST Portal

• The GST registration will be cancelled electronically through the common portal, with effect from the date requested by the taxpayer, where the prescribed returns have been furnished, all applicable tax, interest, fees, penalties and other dues have been paid, and either of the following conditions is satisfied:

(a) The total output tax liability comprising Central Tax, State Tax or Union Territory Tax, Integrated Tax and Compensation Cess, as declared in FORM GSTR-1, including amendments through FORM GSTR-1A, or IFF for supplies made to registered persons, does not exceed ₹2,50,000 in any month from the date of registration until submission of the cancellation application.

(b) The registered person has filed FORM GSTR-10 within three days from the due date of furnishing the remaining returns referred to in Rule 20(3), wherever applicable.

Such cancellation will be communicated electronically through FORM GST REG-3.

E. Verification of Cancellation Application by Proper Officer

• Where the prescribed returns or statements have not been furnished, or any tax, interest, fee, penalty or other amount remains unpaid, the application will be forwarded to the proper officer for examination.
• If the application is found to be in order, the officer must cancel the registration within 15 days and issue an order in FORM GST REG-19.
• Where the application is deficient, the officer may issue a notice in FORM GST REG-03 within 15 days, requiring the applicant to provide clarification, information, documents or pending returns.

F. Reply to Notice and Deemed Approval

• The applicant must submit a reply in FORM GST REG-04 within 15 days from receipt of the notice. If the reply is satisfactory, the proper officer may approve the cancellation within 15 days and issue FORM GST REG-19.
• If the reply is unsatisfactory, the application may be rejected through FORM GST REG-05. Where no reply is furnished within the prescribed period, the application will be deemed rejected and communicated through FORM GST REG-05A.

However, where the proper officer fails to take action within 15 days from receipt of the application or 15 days from receipt of the reply, as applicable, the cancellation application will be deemed approved and communicated through FORM GST REG-19

G.Cancellation in Case of Death of Sole Proprietor

• The provisions of Rule 20 will also apply to the legal heirs of a deceased sole proprietor, as if the cancellation application had been submitted by the proprietor himself.

H. Revision of Effective Date of Cancellation

• Where the proper officer has reasons to believe that the effective date of cancellation should be changed to an earlier date under Section 29(3), the officer may issue a show cause notice in FORM GST REG-34.
• The taxpayer must furnish a reply in FORM GST REG-35 within 30 days from receipt of the notice.
• If the reply is satisfactory, the officer must drop the proceedings and issue FORM GST REG-36 within 30 days from receipt of the reply.
• If the reply is unsatisfactory, the officer may change the effective date of cancellation and issue an order in FORM GST REG-37 within 30 days from receipt of the reply.
• Where no reply is furnished within the prescribed period, the officer may change the effective date and issue FORM GST REG-37 within 60 days from issuance of the notice.
• If the officer fails to issue an order within 60 days from issuance of the notice, the proceedings will be deemed dropped and communicated through FORM GST REG-36.
• The effective date of cancellation once changed under this rule shall not be subject to further change.”.

Cancellation of GST Registration in Certain Cases – Rule 21 of CGST Rules, 2017

• Under Rule 21 of the CGST Rules, 2017, the GST registration of a registered person is liable to be cancelled in the following circumstances:
• Composition Taxpayers: Where a taxpayer paying tax under Section 10 fails to furnish the annual return within three months from its due date.
• Violation of Rule 23: Where the registered person violates the provisions of the third or fourth proviso to Rule 23(1).
• Monthly Return Filers: Where a registered person required to furnish monthly returns under Section 39(1) fails to file returns for a continuous period of six months.
• Quarterly Return Filers: Where a registered person required to furnish quarterly returns under the proviso to Section 39(1) fails to file returns for two consecutive tax periods.
• Non-Compliance with Rule 10A: Where the registered person violates the provisions of Rule 10A relating to furnishing bank account details.

Suspension of GST Registration – Rule 21A of CGST Rules, 2017

• Under Rule 21A of the CGST Rules, 2017, GST registration may be suspended by the proper officer or electronically through the GST common portal in the following circumstances With the effect from 01-04-2027:

Suspension by Proper Officer:

Where the proper officer has reasons to believe that registration is liable to be cancelled under Section 29(3), the officer may suspend the registration from a date determined by the officer until completion of cancellation proceedings under Rule 22.

Automatic Suspension through GST Portal:

Registration may be suspended electronically where a registered person:

1. Paying tax under Section 10 fails to furnish the annual return beyond three months from its due date.
2. Required to furnish monthly returns under Section 39(1) fails to file returns for six consecutive months.
3. Required to furnish quarterly returns under Section 39(1) fails to file returns for two consecutive tax periods.
4. Fails to comply with Rule 10A relating to furnishing bank account details.

In such cases, the taxpayer will be intimated electronically through FORM GST REG-31 and required to furnish the pending returns or comply with Rule 10A within 30 days from the date of intimation.

Restrictions During Suspension:

During the suspension period, the registered person shall not make taxable supplies, issue tax invoices or charge GST on supplies. Further, the taxpayer will not be required to furnish returns under Section 39 during the suspension period.

Revocation of Suspension:

Where registration is suspended electronically, the suspension will be deemed revoked if all pending returns are furnished or Rule 10A is complied with within 30 days from the date of intimation in FORM GST REG-31. Where registration is suspended by the proper officer, suspension will be deemed revoked upon completion of cancellation proceedings under Rule 22.

Effective Date and Treatment of Supplies:

Revocation of suspension will take effect from the original date of suspension. Where an order revoking suspension is passed, Section 31(3)(a), Section 40 and the prescribed procedures will apply to supplies made during the suspension period.

Cancellation of GST Registration by Proper Officer – Rule 22 of CGST Rules, 2017: The Central Government has notified the substitution of Rule 22 of the CGST Rules, 2017, relating to cancellation of GST registration by the proper officer with the effect from 01-04-2027.

Issuance of Show Cause Notice:

Where the proper officer has reasons to believe that registration is liable to be cancelled under Section 29(3) of the CGST Act, a Show Cause Notice shall be issued in FORM GST REG-17, requiring the registered person to explain within seven working days from the date of service of the notice why the registration should not be cancelled.

Reply to Show Cause Notice:

The registered person must submit a reply in FORM GST REG-18 within the prescribed period. If the reply is satisfactory, the proper officer shall drop the cancellation proceedings by issuing an order in FORM GST REG-20.

Cancellation by Proper Officer:

Where the reply is not satisfactory, the proper officer shall issue an order in FORM GST REG-19 within 30 days from receipt of the reply or from the due date for furnishing the reply, as applicable. The officer shall cancel the registration from the date determined and direct the taxpayer to pay any outstanding tax, interest, penalty or other amounts payable under Section 29.

Automatic Cancellation through GST Portal:

Where registration has been suspended under Rule 21A(2) and the taxpayer fails to furnish all pending returns or comply with Rule 10A within 30 days from the date of suspension, the registration shall be deemed cancelled electronically through the GST common portal. Such cancellation will be communicated in FORM GST REG-38.

Change in Effective Date of Cancellation:

Where the proper officer has reasons to believe that the effective date of cancellation should be changed to an earlier date, the procedure prescribed under Rule 20(14) to Rule 20(20) shall apply, mutatis mutandis. This includes issuance of notice, submission of reply, passing of an order and the prescribed time limits.

Introduction of System-Based Revocation of GST Registration Cancellation – New Rule 23A : (Effective Date: 1 April 2027)

• The Central Government has introduced Rule 23A in the CGST Rules, 2017, providing a simplified procedure for revocation of GST registration cancelled electronically through the GST common portal under Rule 22(5).
• Under the new rule, a registered person whose GST registration has been automatically cancelled may apply for revocation in FORM GST REG-21 within 180 days from the date of cancellation, subject to the following conditions:
• Cancellation Due to Non-Filing of Returns: Where registration has been cancelled due to non-filing of returns, the taxpayer must furnish all pending returns and pay the applicable tax, interest, penalty and late fee before applying for revocation.
• Cancellation Due to Non-Compliance with Rule 10A: Where registration has been cancelled due to failure to furnish bank account details under Rule 10A, the taxpayer must furnish the required bank account details before applying for revocation.
• Automatic Approval of Revocation: Upon filing all pending returns or complying with Rule 10A, as applicable, the revocation application shall be deemed approved electronically through the GST common portal, and an order in FORM GST REG-22 shall be communicated to the taxpayer.
• Filing of Returns After Revocation: The taxpayer must furnish all returns due for the period from the date of the cancellation order to the date of the revocation order within 30 days from the date of the revocation order.

Note: The above analysis provides only a summary of the amendments made to the CGST Rules, 2017. For a detailed understanding of the provisions and their applicability, readers are advised to refer to the respective rules under the CGST Rules, 2017, and Notification No. 05/2026–Central Tax dated 26.10.2026 for the exact amendments and their effective dates

2.Amendments to GST Refund Rules under CGST Rules, 2017

The government has amend the Rule 89 with following changes:

• In Rule 89(1) & (1A) the words “either directly or through a Facilitation Centre notified by the Commissioner” have been omitted it means now RFD-01 can file only through the Portal.
• In Rule 89(2) following changes has been made which will applicable from 01-12-2026.
• Under Rule 89(1A) and Rule 89(1B) of the CGST Rules, 2017, persons claiming a refund of tax paid on a transaction initially treated as an intra-State supply but subsequently held to be an inter-State supply under Section 77, and person claiming a refund of additional IGST paid due to an upward revision in the price of exported goods where the original IGST refund has already been sanctioned under Rule 96, are required to file an application in FORM GST RFD-01, along with the prescribed documentary evidence in Annexure 1 of GST RFD -01 (As per Annexure A), subject to the applicable conditions and time limits.
• In Rule 89(2)(b) (Export of Goods), (ba) (Export of Electricity), (bb) (Upward Revision in Price of Goods Subsequent to Exports), (c) (Export of Services), (d) (Supply of Goods to SEZ Units or Developers) and (e) (Supply of Services to SEZ Units or Developers) of the CGST Rules, 2017, the words “number and date” have been substituted with “details” in relation to invoices, shipping bills, bills of export and other relevant documents. This amendment broadens the scope of information required for claiming GST refunds, instead of limiting it to the number and date of such documents.
• Further, in Rule 89(2)(d) and (e), the word “second” has been substituted with “first” to align the reference with the remaining proviso under Rule 89(1).
• In Rule 89(2)(h) of the CGST Rules, 2017, relating to refund of unutilised Input Tax Credit (ITC), the words “number and date of invoices received and” have been substituted with “details of the invoices received, along with the details of the input tax credit and details of the invoices”. This amendment broadens the scope of information required for claiming GST refunds by requiring details of invoices received and ITC, instead of limiting the information to invoice numbers and dates.
• A new clause (ha) has been inserted in Rule 89(2) of the CGST Rules, 2017, requiring suppliers making supplies to merchant exporters under Notification No. 40/2017-Central Tax (Rate) or Notification No. 41/2017-Integrated Tax (Rate) to furnish a statement containing details of invoices issued during the tax period, along with the relevant shipping bills or bills of export filed by the registered recipient (merchant exporter), while claiming a refund of unutilised ITC under Section 54(3) of the CGST Act, 2017.

Insertion of New Clauses (n) and (o) under Rule 89(2) –

• • Rule 89(2)(n): A new clause (n) has been inserted, requiring taxpayers claiming a refund of unutilised ITC under Section 54(3) to furnish a statement containing details of invoices received, along with details of the Input Tax Credit (ITC).
  • Rule 89(2)(o): A new clause (o) has been inserted, requiring taxpayers claiming a refund of unutilised ITC under Section 54(3) or a refund on account of zero-rated supplies made with payment of tax to furnish a declaration confirming that the applicant has not been prosecuted for any offence under the CGST Act or any other applicable law involving tax evasion exceeding ₹250 lakh during any period of five years immediately preceding the tax period to which the refund claim relates.

 Insertion of New Clause (p) under Rule 89(2) (Effective from 01-04-2027)

A new clause (p) has been inserted in Rule 89(2) of the CGST Rules, 2017, requiring taxpayers claiming a refund of unutilised ITC under Section 54(3), including ITC availed on capital goods under Rule 89(4) or Rule 89(5), to furnish a declaration confirming that such capital goods have not been sold, disposed of or permanently removed from the business, are eligible for ITC and are being used for making the relevant zero-rated supplies or inverted rated supplies.

Substitution of Rule 89(3) – Order of Debit from Electronic Credit Ledger for GST Refund

Rule 89(3) of the CGST Rules, 2017 has been substituted to prescribe the order of debiting the Electronic Credit Ledger while claiming a refund of Input Tax Credit (ITC). Under the revised provision, the refund amount shall be debited first from the available IGST balance, followed by equal amounts from the CGST and SGST/UTGST balances. Where there is insufficient balance in either the CGST or SGST/UTGST ledger, the shortfall shall be debited from the other ledger to the extent of the available balance.

Illustration 1: – In case of shortfall in the balance available in electronic credit ledger of central tax, the differential amount shall be debited from the electronic credit ledger of State tax or Union territory tax;

Illustration 2: – In case of shortfall in the balance available in electronic credit ledger of State tax or Union territory tax, the differential amount shall be debited from the electronic credit ledger of central tax

Clarification on Value of Zero Rated Supply for Refund Calculation – Rule 89(4)

For the purpose of calculating the refund of unutilised ITC under Rule 89(4) of the CGST Rules, 2017, the value of goods exported out of India shall be taken as the Free on Board (FOB) value declared in the Shipping Bill or Bill of Export, or the value declared in the tax invoice or bill of supply, whichever is lower.

Accordingly, while the earlier restriction of 1.5 times the value of like goods domestically supplied has been omitted, the refund calculation will continue to be subject to the lower of the FOB value and the invoice or bill of supply value.

Inclusion of Capital Goods ITC in Refund of Zero-Rated Supplies – Rule 89(4)(B) and (G)

In Rule 89(4)(B) of the CGST Rules, 2017, the definition of “Net ITC” has been amended to include ITC on capital goods attributable to the relevant period for calculating refunds of unutilised ITC on zero-rated supplies made without payment of tax under Bond or Letter of Undertaking (LUT).

Further, a new clause (G) has been inserted under Rule 89(4), prescribing the following conditions for claiming such ITC:

“Capital goods attributable to the relevant period’, means such capital goods on which the input tax credit has been availed in any of the months not earlier than fifty-nine months from the last month of the relevant period subject to the condition that input tax credit in respect of the said capital goods has been availed on or after the 1st day of April, 2027, and the input tax credit on such capital goods shall be calculated as per the following formula-

Input tax credit on such capital goods = {Aggregate of (1/60 * eligible ITC availed on capital goods * number of months)} – {Aggregate of input tax credit reversals applicable as per the provisions of the Act or the Rules in respect of such capital goods attributable to the months in the relevant period}.”

 “Explanation. — For the purposes of this clause, number of months shall be taken as the period covered within the relevant period, out of the period of sixty months commencing from the month in which the input tax credit in respect of such capital goods was availed.”;

 Amendment in Refund under Inverted Duty Structure – Rule 89(5)

Rule 89(5) of the CGST Rules, 2017 has been substituted to extend the benefit of refund of unutilised ITC under the Inverted Duty Structure to eligible input services and capital goods, in addition to inputs. Under the amended provision, Net ITC shall include ITC availed on inputs and eligible input services during the relevant period, along with ITC on capital goods attributable to the relevant period.

For this purpose, eligible input services means input services on which ITC has been availed on or after 1 November 2026, whereas ITC on capital goods shall be considered proportionately in accordance with Rule 89(4), subject to the condition that such ITC has been availed on or after 1 April 2027.

The revised refund formula is:

Maximum Refund Amount = {(Turnover of inverted rated supply of goods and services) × Net ITC ÷ Adjusted Total Turnover} – tax payable on such inverted rated supply of goods and services.

 Explanation. — (i) “Net ITC” shall mean the sum of input tax credit availed on inputs and eligible input services during the relevant period and the input tax credit on capital goods attributable to the relevant period;

(ii) “Eligible input services” shall mean input services on which input tax credit has been availed on or after the 1st day of November, 2026;

(iii) “Adjusted Total Turnover”, “Capital goods attributable to the relevant period” and “relevant period” shall have the same meaning as assigned to them in sub-rule (4).”.

Reduction in Time Limit for Acknowledgement of Refund Application – Rule 90(2)

In Rule 90(2) of the CGST Rules, 2017, the time limit for scrutiny of refund applications has been reduced from 15 days to 10 days.

Time Limit for Issuance of Deficiency Memo – Rule 90(3)

In Rule 90(3) of the CGST Rules, 2017, a time limit of 10 days from the date of filing of the refund application has been introduced for communicating deficiencies.

Accordingly, where any deficiencies are noticed in the refund application, the proper officer shall communicate such deficiencies electronically through FORM GST RFD-03 within 10 days from the date of filing of the application, requiring the applicant to file a fresh refund application after rectifying the deficiencies.

Introduction of Deemed Acknowledgement of Refund Application – New Rule 90(3A)

A new sub-rule (3A) has been inserted under Rule 90 of the CGST Rules, 2017, providing for automatic acknowledgement of refund applications where the proper officer fails to issue an acknowledgement in FORM GST RFD-02 or communicate deficiencies in FORM GST RFD-03 within 10 days from the date of filing of the refund application.

In such cases, the refund application shall be deemed to have been acknowledged, and FORM GST RFD-02 shall be made available electronically through the GST common portal. The time limit prescribed under Section 54(7) for sanctioning the refund shall be calculated from the date of filing of the refund application.

Introduction of System-Based Provisional Refund Sanction – Rule 91(2) and 91(3)

Automatic Sanction of Provisional Refund – Rule 91(2)

Rule 91(2) of the CGST Rules, 2017 has been substituted to provide for system-based issuance of provisional refund orders.

Under the amended provision, the GST common portal shall generate an order in FORM GST RFD-04 within three working days from the date of acknowledgement under Rule 90(1A), (2) or (3A), based on identification and evaluation of risk by the system.

Further, the provisional refund order generated in FORM GST RFD-04 shall not require revalidation by the proper officer.

System-Based Payment Order – Rule 91(3)

Rule 91(3) has also been amended to provide that the payment order in FORM GST RFD-05, for the amount sanctioned under Rule 91(2), may be made available through the GST common portal instead of being issued by the proper officer.

Introduction of System-Based Refund Sanction and Payment – Rule 92(1B) and 92(4)

System-Based Sanction of Refund – New Rule 92(1B)

A new sub-rule (1B) has been inserted under Rule 92 of the CGST Rules, 2017, providing for automatic generation of refund sanction orders in FORM GST RFD-06 through the GST common portal for refunds due under Section 54 and payable under Section 49(6).

The order shall specify the refund amount sanctioned, the amount adjusted against any outstanding demand under the CGST Act or any other applicable law, and the balance amount refundable to the applicant.

A new sub-rule (1B) has been inserted under Rule 92 of the CGST Rules, 2017, providing for automatic generation of refund sanction orders in FORM GST RFD-06 through the GST common portal for refunds due under Section 54 and payable under Section 49(6).

The order shall specify the refund amount sanctioned, the amount adjusted against any outstanding demand under the CGST Act or any other applicable law, and the balance amount refundable to the applicant.

Issuance of Refund Payment Order – Rule 92(4)

Rule 92(4) has been substituted to provide that where the proper officer is satisfied, or the GST common portal determines, that the refund amount under Rule 92(1), (1A), (1B) or (2) is payable to the applicant under Section 54(8), an order shall be issued in FORM GST RFD-06, along with a payment order in FORM GST RFD-05.

The sanctioned refund amount shall be electronically credited to the applicant’s bank account mentioned in the GST registration particulars and specified in the refund application, on the basis of a consolidated payment advice.

Note: The above analysis provides only a summary of the amendments made to the CGST Rules, 2017. For a detailed understanding of the provisions and their applicability, readers are advised to refer to the respective rules under the CGST Rules, 2017, and Notification No. 05/2026–Central Tax dated 26.10.2026 for the exact amendments and their effective dates.

3. Amendments to E-way Bill related Rules under CGST Rules, 2017

Amendment in E-Way Bill Provisions for Transportation of Goods by Metro Railway – Rule 138(2A)

Rule 138(2A) of the CGST Rules, 2017 has been amended to include transportation of goods by metro railway, in addition to transportation by railways, air or vessel.

Accordingly, where goods are transported by metro railway, the registered supplier or recipient shall generate the E-Way Bill and furnish the details in Part B of FORM GST EWB-01, either before or after commencement of movement of goods.

Further, the proviso has been amended to specify that railways or metro railway shall not deliver the goods unless the required E-Way Bill is produced at the time of delivery.

Note: The above analysis provides only a summary of the amendments made to the CGST Rules, 2017. For a detailed understanding of the provisions and their applicability, readers are advised to refer to the respective rules under the CGST Rules, 2017, and Notification No. 05/2026–Central Tax dated 26.10.2026 for the exact amendments and their effective dates.

4.Amendment in Provisional Attachment of Property – Rule 159(1) and 159(5)

Issuance of Provisional Attachment Order – Rule 159(1)

Rule 159(1) of the CGST Rules, 2017 has been amended to provide that where the Commissioner decides to provisionally attach any property, including a bank account, under Section 83 of the CGST Act, 2017, an order shall be issued in Part A of FORM GST DRC-22, specifying the details of the property being attached.

Rejection of Objection against Provisional Attachment – Rule 159(5)

Rule 159(5) has been amended to provide that where a person files an objection in FORM GST DRC-22A against provisional attachment of property, the Commissioner shall, after providing an opportunity of being heard, reject the objection through Part B of FORM GST DRC-22 if not satisfied with the applicant’s submissions, or release the attached property by issuing an order in FORM GST DRC-23.

Note: The above analysis provides only a summary of the amendments made to the CGST Rules, 2017. For a detailed understanding of the provisions and their applicability, readers are advised to refer to the respective rules under the CGST Rules, 2017, and Notification No. 05/2026–Central Tax dated 26.10.2026 for the exact amendments and their effective dates.

5.Amendments Relating to Input Service Distributor (ISD)

Amendment in Rule 36(1) & 36(2) – Availment and Distribution of Input Tax Credit by ISD

In Rule 36(1) of the CGST Rules, 2017, the word “including” has been substituted with “or be distributed by”. Accordingly, the amended provision clarifies that Input Tax Credit (ITC) shall be availed by a registered person or distributed by an Input Service Distributor (ISD) on the basis of the prescribed documents.

This amendment distinguishes the Availment of ITC by a registered person from the distribution of ITC by an ISD.

• in Rule 36(2), the words “or be distributed by the Input Service Distributor” have been inserted.
• ITC can be availed by a registered person or distributed by an Input Service Distributor (ISD) only where the relevant document contains all applicable particulars prescribed under Chapter VI of the CGST Rules, 2017.
• However, the existing proviso allows a registered person to avail ITC even if certain prescribed particulars are missing, provided the document contains the amount of tax charged, description of goods or services, total value of supply, GSTIN of the supplier and recipient, and place of supply in the case of inter-State supply.

Amendment in Rule 39(1)(i) – Distribution of IGST Credit

Earlier, an ISD was required to distribute ITC received under the IGST head only as IGST credit to its recipients.

Under the amended provision, the words “or central tax” have been inserted. Accordingly, an ISD can now distribute ITC on account of IGST as either IGST credit or CGST credit to its recipients.

Amendment in Rule 39(1A) – Transfer of ITC on Services Subject to Reverse Charge

Earlier, Rule 39(1A) referred to the transfer of ITC relating to common input services on which GST was payable under Reverse Charge Mechanism (RCM). The amendment removes the word “common”, thereby allowing a registered person having the same PAN and State code as the ISD to transfer ITC relating to input services attributable to one or more distinct persons, even where such services are not common to multiple recipients.

This applies to input services subject to RCM under Sections 9(3) or 9(4) of the CGST Act or Sections 5(3) or 5(4) of the IGST Act. Such credit may be transferred to the ISD through an invoice, credit note or debit note issued in accordance with Rule 54(1A). The ISD shall subsequently distribute the credit in accordance with Rule 39(1).

Amendment in Rule 54(1A)(a) – Expansion of Scope of ITC Transfer

Earlier, a registered person having the same PAN and State code as the ISD could issue an invoice, credit note or debit note to transfer ITC relating to common input services to the ISD. Under the amended provision, the words “credit of common input services” have been replaced with “credit in respect of input services attributable to one or more distinct persons”.

Accordingly, ITC relating to input services attributable to even a single distinct person, or multiple distinct persons, can now be transferred to the ISD. The requirement that such services must be common to multiple recipients has been removed.

Amendment in Rule 54(1A)(a)(iv) – Particulars of Invoice

Earlier, the invoice issued for transferring ITC to the ISD was required to contain the GSTIN of the supplier of common services and the original invoice number. The word “common” has now been replaced with “such”. Accordingly, the invoice must contain the GSTIN of the supplier of such services and the original invoice number whose credit is being transferred to the ISD.

Amendment in Rule 54(1A)(b) – Taxable Value of Services

Earlier, the taxable value mentioned in the invoice issued for transferring ITC to the ISD was required to be the same as the value of the common services. Under the amendment, the words “common services” have been replaced with “services whose credit is sought to be transferred to the Input Service Distributor”.

Accordingly, the taxable value mentioned in the transfer invoice must be the same as the value of the services whose ITC is being transferred to the ISD, irrespective of whether such services are attributable to one or more distinct persons.

Amendment in Rule 60(2) – Inclusion of FORM GSTR-6A

Earlier, the invoice details furnished by a Non-Resident Taxable Person in FORM GSTR-5 under Rule 63 were made available electronically to the recipient of credit in Part A of FORM GSTR-2A through the GST portal.

Under the amended provision, the words “and to the Input Service Distributor in FORM GSTR-6A” have been inserted after “FORM GSTR-2A”.

Note: The above analysis provides only a summary of the amendments made to the CGST Rules, 2017. For a detailed understanding of the provisions and their applicability, readers are advised to refer to the respective rules under the CGST Rules, 2017, and Notification No. 05/2026–Central Tax dated 26.10.2026 for the exact amendments and their effective dates.

6. Amendment in Rule 44 – Manner of Reversal of Input Tax Credit under Special Circumstances

Amendment in Rule 44(1) – Removal of Reference to Section 29(5)

Earlier, Rule 44(1) prescribed the manner of calculating ITC reversal on inputs held in stock, inputs contained in semi-finished and finished goods, and capital goods in cases covered under Section 18(4) or Section 29(5) of the CGST Act.

Under the amendment, the reference to Section 29(5) has been removed from Rule 44(1). Accordingly, Rule 44(1) now expressly refers only to Section 18(4) & Section 29 for determining the amount of ITC reversal.

The existing method of calculating ITC reversal remains unchanged, including invoice-based proportionate calculation for inputs and calculation based on the remaining useful life of capital goods, considering a useful life of five years.

Amendment in Rule 44(4) – Reporting of ITC Reversal in FORM GST REG-16

 Earlier, Rule 44(4) required the amount of ITC reversal to be reported in FORM GST ITC-03 for cases covered under Section 18(4) and in FORM GSTR-10 for cases involving cancellation of GST registration.

Under the amendment, FORM GST REG-16 has been added alongside FORM GSTR-10 for reporting ITC reversal relating to cancellation of registration.

Accordingly, the amount determined under Rule 44(1) shall form part of the taxpayer’s output tax liability and the details shall be furnished in FORM GST ITC-03 for cases covered under Section 18(4), and in FORM GST REG-16 or FORM GSTR-10, as applicable, for cancellation of registration.

Both amendments will take effect from 1 December 2026

 Note: The above analysis provides only a summary of the amendments made to the CGST Rules, 2017. For a detailed understanding of the provisions and their applicability, readers are advised to refer to the respective rules under the CGST Rules, 2017, and Notification No. 05/2026–Central Tax dated 26.10.2026 for the exact amendments and their effective dates.

7. Other Changes in CGST Rules,2017

Amendment in Rule 62(5) – Extension of GSTR-4 Filing Due Date

Earlier, a registered person withdrawing from the Composition Scheme, either voluntarily or upon withdrawal by the proper officer, was required to furnish FORM GSTR-4 for the period during which the person was covered under the Composition Scheme by 30th April following the end of the financial year in which such withdrawal occurred.

Under the amended provision, the word “April” has been replaced with “June”. Accordingly, the due date for filing FORM GSTR-4 in such cases has been extended from 30th April to 30th June following the end of the relevant financial year.

Amendment in Rule 63 – Reduction in Time Limit for Filing GSTR-5

Earlier, every registered Non-Resident Taxable Person was required to furnish FORM GSTR-5 within 20 days after the end of the tax period or within 7 days after the last day of the validity period of registration, whichever was earlier.

Under the amended provision, the word “twenty” has been replaced with “thirteen”. Accordingly, the time limit for filing FORM GSTR-5 has been reduced from 20 days to 13 days after the end of the tax period, or within 7 days after the last day of the validity period of registration, whichever is earlier

Insertion of New Rule 83C – Amendment of Enrolment of GST Practitioners (effective from 01-11-2026)

Rule 83C(1) – Application for Amendment of Enrolment Details

Under the newly inserted provision, where a GST Practitioner wishes to change any particulars previously furnished in FORM GST PCT-01, an amendment application must be submitted electronically in FORM GST REG-14 through the GST portal. The application must be duly signed or verified through an Electronic Verification Code (EVC) and accompanied by relevant supporting documents relating to the proposed changes.

Rule 83C(2) – Applicability of Rule 19

The provisions of Rule 19, which prescribe the procedure for amendment of GST registration details, shall also apply mutatis mutandis (with necessary modifications) to applications for amendment of GST Practitioner enrolment details furnished in FORM GST PCT-01.

Accordingly, the amendment application will be governed by the applicable procedural requirements of Rule 19, suitably adapted for GST Practitioner enrolment.

Amendment in Rule 86(3) – Linking Debit of ITC with Rule 89(3)

Earlier, where a registered person claimed a refund of unutilised ITC under Section 54 of the CGST Act, an amount equal to the refund claimed was required to be debited from the Electronic Credit Ledger.

Under the amended provision, the words “in the manner as prescribed in sub-rule (3) of rule 89” have been inserted. Accordingly, whenever a registered person claims a refund of unutilised ITC under Section 54, the Electronic Credit Ledger shall be debited to the extent of the refund claimed, following the procedure prescribed under Rule 89(3).

Rule 89(3) provides that where a refund application relates to ITC, the applicant shall debit the Electronic Credit Ledger by an amount equal to the refund claimed.

Amendment in Rule 86A(1) – Change in Authorised Officer

Earlier, the power to restrict utilisation of ITC was available to the Commissioner or an officer authorised by him, not below the rank of Assistant Commissioner.

Under the amended provision, these words have been replaced with “proper officer”. Accordingly, the power to restrict debit from the Electronic Credit Ledger shall now be exercised by the proper officer.

Amendment in Rule 86A(1) – Introduction of FORM GST DRC-26

Earlier, the authorised officer could restrict the utilisation of ITC on specified grounds, with reasons recorded in writing. Under the amended provision, the proper officer shall restrict debit of an amount equivalent to such ITC from the Electronic Credit Ledger by issuing an order in FORM GST DRC-26. The order shall be made available electronically to the registered person through the GST portal.

Amendment in Rule 86A(2) – Validity of ITC Blocking Order

Under the amended provision, the order issued in FORM GST DRC-26 shall remain effective until the earlier of the following:

• Expiry of one year from the date of issuance of the order; or
• The date on which the proper officer, upon being satisfied that the conditions for restricting ITC no longer exist, allows debit from the Electronic Credit Ledger through an order.

New Rule 86A(3) – Facility to File Objection in FORM GST DRC-27

A new procedure has been introduced allowing registered taxpayers to file an objection against the restriction imposed on their Electronic Credit Ledger.

The taxpayer may submit an objection in FORM GST DRC-27, stating that the debit of ITC was not, or is not, liable to be restricted.

New Rule 86A(4) – Disposal of Objection through FORM GST DRC-28

Upon receiving an objection in FORM GST DRC-27, the proper officer shall provide the registered person a reasonable opportunity of being heard and thereafter issue an order electronically in FORM GST DRC-28 through the GST portal.

The order may either:

• Part A of FORM GST DRC-28: Allow debit of the restricted amount from the Electronic Credit Ledger.
• Part B of FORM GST DRC-28: Reject the objections raised by the registered person and continue the restriction, subject to the prescribed validity period.

Note: The above analysis provides only a summary of the amendments made to the CGST Rules, 2017. For a detailed understanding of the provisions and their applicability, readers are advised to refer to the respective rules under the CGST Rules, 2017, and Notification No. 05/2026–Central Tax dated 26.10.2026 for the exact amendments and their effective dates.

8. Amendments in Certain GST Forms

GST Notification No 05/2026-CT

Annexure-A

Annexure-B

Annexure-C

Annexure-D

Annexure-E

Annexure-F