By: PRAVEEN SHARMA (CA)
On 26 October 2026 the CBIC issued eight circulars (Nos. 257 to 264/2026-GST) and three notifications. They follow the 57th GST Council meeting held on 8 October. Together they aim at three things: smoother registration, less litigation and better cash flow.
Registration made predictable. Circular 257/03/2026 is addressed to applicants as well as officers. It explains how to fill FORM GST REG-01 and lists the documents to upload for identity, constitution, authorised signatory and principal place of business. It also warns that a legible, matching address proof is the commonest reason for queries or rejection. Officers are asked to avoid unwarranted queries, and an application is deemed approved if the officer does not act within the time allowed by Rule 9.
Fairer demand and appeal proceedings. Circular 258/04/2026 deals with demand, adjudication and appeals. It says a pre-show cause notice intimation may be issued wherever feasible, so that taxpayers can explain their position before a notice is issued. It also sets out how a show cause notice should be drafted. Circular 259/05/2026 clarifies the pre-deposit under sections 107(6) and 112(8).
Credit and export relief.
Circular 260 deals with Input Service Distributors.
Circular 261 deals with the ITC option under section 17(4) for banks and NBFCs.
Circular 262 withdraws the restriction on ITC for demo vehicles under the dealer-agency model.
Circular 263 protects zero-rating where export proceeds are realised through RBI-permitted settlement methods.
Circular 264/10/2026 accepts the Supreme Court’s Goodluck India ruling on Rule 96(10). It treats the rule as omitted from the beginning and gives relief in pending export refund proceedings, including the Rule 89(4A) and 89(4B) position.
Notifications.
Notification 03/2026-CT: Sections 153 to 155 of the Finance Act, 2026 come into force on 1 November 2026. Section 155 extends 90% provisional refund to inverted duty structure claims under section 54(6). Trade reports link this to the new post-sale discount rules.
Notification 05/2026-CT: The CGST (Amendment) Rules, 2026 take effect from 1 November. They insert Rule 14B, which lets small suppliers selling through e-commerce operators register in other States using the operator’s warehouse. They also substitute Rule 19 (amendment of registration) and Rule 20 (cancellation on request), with Rule 19(3) taking effect from 1 December.
Notification 04/2026-CT: This amends the e-invoicing notification 13/2020-CT. From 1 January 2027, e-invoicing extends to RCM supplies from unregistered persons and to import of services.
What taxpayers should do now. Check registration files against the Annexure checklist. Review any pending inverted-duty refund claims and exporters’ pending Rule 96(10) matters. Prepare for the 1 November and 1 January changes.
