At its 57th meeting on October 8, 2026, the GST Council raised the prosecution threshold for tax offences to ₹5 crore and simplified registration for small e-commerce sellers. These reforms aim to improve the ease of doing business. While proposals regarding uniform GST on delivery charges were reviewed, the focus remained on reducing the compliance burden for taxpayers and traders.
The 57th GST Council met on October 8, 2026, to address key administrative and compliance reforms aimed at easing the operational burden for businesses across India. The Council announced significant changes, most notably raising the prosecution threshold for GST-related offences. The limit has been increased from ₹1 crore to ₹5 crore, a move designed to reduce litigation and provide relief to taxpayers.
In addition to the threshold hike, the Council moved to curtail the arrest powers of tax officers in specified cases, signaling a more balanced approach to tax enforcement. For the e-commerce sector, the meeting brought specific relief with the introduction of a simplified GST registration mechanism. This change is intended to make it easier for small e-commerce sellers to register and operate across different states, removing a major hurdle that often hindered small businesses from accessing digital marketplaces.
The Council also reviewed various proposals regarding the tax framework for logistics and delivery services. Specifically, proposals to bring delivery charges for e-commerce and food aggregators under a uniform 5% GST rate were on the agenda for consideration. Investors and businesses should monitor official government notifications and gazette updates, as these will clarify the final implementation status of such tax adjustments. The current focus of the Council remains on streamlining existing rules rather than broad rate changes.
These compliance-focused measures are expected to benefit the broader retail and digital commerce ecosystem by reducing operational friction. By simplifying the registration process and raising the bar for prosecution, the government aims to create a more supportive environment for small-scale entrepreneurs and online vendors. Market observers will now watch for the detailed circulars and operational guidelines that will define how these reforms are applied in practice.