Overview
- The GST Council approved the GST 2.0 process-reform package on October 8, 2026, focusing on day-to-day rules rather than changing tax rates.
- The Council removed GST officers' power to arrest and raised the criminal prosecution threshold from Rs 1 crore to Rs 5 crore to limit routine criminal action.
- No-showcause notices will not be issued for demands of Rs 10,000 or less and pending notices below that level will be withdrawn to reduce small disputes.
- Refunds, registration and returns will be automated so the portal acknowledges claims within 10 days, sanctions 90% of refund amounts by system risk checks, and issues orders within three working days.
- Input tax credit was widened for items such as employer-paid employee insurance and telecom towers, a committee was set up to protect bona fide buyers when suppliers default, transit checks were limited, and rate structure was left unchanged.