Overview
- The first phase of GST process reforms began on Sunday, November 1, 2026, following decisions made at the 57th GST Council on October 8.
- Small suppliers selling through e‑commerce platforms can declare a platform warehouse as their principal place of business in states where they lack a physical office, provided they have a genuine presence in one state, complete Aadhaar verification and physical verification there, and obtain the e‑commerce platform's consent.
- Registrations obtained under the new route limit pass‑through input tax credit to Rs 2.5 lakh per month and remove the need for tax officer involvement in out‑of‑state registrations when platform consent is given.
- Refund processing will be automated: full claims for excess balances in the electronic cash ledger will be sanctioned automatically and claims for zero‑rated or inverted duty supplies will receive 90% provisional sanction automatically through a risk‑based system.
- The GST department has standardised registration documents, upgraded the GST portal user interface, and relaxed post‑supply discount rules with safeguards, a package that is expected to help about 9.5 lakh small sellers and ease working capital pressure for MSMEs, FMCG and manufacturing firms while routine verification and risk checks continue to apply.