/ News · GST · Updated 2026-10-28

GST Changes From 1 November 2026: What the 57th GST Council and CBIC's 8 Circulars Mean for You, refunds, registration, scrap and discounts.

Following the 57th GST Council meeting on 8 October 2026, CBIC issued eight circulars dated 26 October 2026 and a set of notifications that mostly take effect on 1 November 2026. The headline changes: 90% provisional refunds for inverted duty structures, no INR 1,000 minimum for courier and postal export refunds, simpler handling of post-sale discounts, tighter rules for scrap trades, and limits on what officers can ask for at registration.

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Written by CA Durgesh Chavda

Chartered Accountant (ICAI) · Founder, Bharat Quantum Prospera · NRI taxation, US incorporation, transaction due diligence, forensic audit, AEO, cross-border tax · LinkedIn

/ From 1 November 2026

Notifications.

Inverted duty refunds: businesses whose input tax exceeds output tax can get 90% of the refund provisionally, subject to risk assessment.
Small exporters: the INR 1,000 minimum for refunds of tax paid on exports through courier or post is removed.
Post-sale discounts: simplified credit-note provisions for discounts given by manufacturers to distributors and retailers.
Reverse charge on scrap: used cooking oil, plastic waste and scrap, tyre waste and scrap, and electrical and electronic waste supplied by unregistered persons to registered persons now fall under reverse charge (Notification 04/2026-Central Tax (Rate)).
Scrap dealers must register: suppliers of those items and of metal scrap (Chapters 72-81) lose the small-supplier registration exemption (Notification 06/2026-Central Tax).
GST TDS on scrap: registered buyers of those items from registered suppliers must deduct GST TDS (Notification 07/2026-Central Tax).
Rates: retreaded tractor tyres get a separate lower-rate entry; isabgol (psyllium seed) is exempt.

/ The eight circulars (26 October 2026)

What each one settles.

Circular	Subject	Key point
257/03/2026	Registration	Officers cannot seek unwarranted documents; queries only through REG-03 with a 7-working-day reply; missed timelines mean deemed approval.
258/04/2026	Demand and adjudication	Show cause notices must be specific and quantified; fraud allegations need concrete evidence; demand cannot exceed the notice.
259/05/2026	Pre-deposit for appeals	10% of disputed tax; refund through RFD-01 after a favourable order, even if the department appeals.
260/06/2026	Input Service Distributor	Multiple ISD registrations allowed within a state for distinct verticals.
261/07/2026	Banks and NBFCs	Clarifies the 50% ITC option under Section 17(4).
262/08/2026	Demo vehicles	ITC on demo vehicles not blocked for dealer-agency models.
263/09/2026	Export of services	Payment received into a repatriable INR account (such as SNRR) counts as foreign-exchange receipt for export of services.
264/10/2026	Rule 96(10)	Omission applies retrospectively from 23 October 2017; demands based on it cannot be sustained.

/ What to do this week

Action list.

Exporters with Rule 96(10) or Rule 89(4A)/(4B) disputes: file supplementary submissions citing Circular 264/10/2026 and claim refunds of amounts paid under protest.
Businesses with inverted duty structures: line up refund applications for the faster 90% provisional route.
Buyers of scrap and e-waste: update purchase processes for reverse charge and GST TDS from 1 November.
Service exporters paid into SNRR or similar rupee accounts: check refunds or demands that turned on the foreign-exchange condition.
Pending registration applications stuck on queries: cite Circular 257/03/2026.

Sources: TaxO: CBIC circulars after 57th GST Council; CAclubindia: notifications from 1 Nov 2026; India.com: changes from 1 Nov 2026.

Last updated: 28 October 2026. Some notification numbers are as reported by secondary sources. Confirm against the official circular or notification before acting.

/ Ready when you are

GST refund or dispute affected by these changes?

Email durgesh@bharatquantumprospera.com or WhatsApp +91 78018 87130. Fixed-scope quote within 48 hours; work delivered remotely.

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FAQ

Common questions, answered.

What GST changes apply from 1 November 2026?

90% provisional refunds for inverted duty structures, no INR 1,000 minimum for courier/postal export refunds, simpler post-sale discount credit notes, reverse charge and GST TDS on specified scrap and e-waste, compulsory registration for scrap suppliers, and minor rate changes.

When was the 57th GST Council meeting?

8 October 2026, in New Delhi. CBIC issued eight implementing circulars (257 to 264) on 26 October 2026.

Can a GST officer ask for any document during registration?

No. Circular 257/03/2026 bars unwarranted document requests; deficiencies must be raised in FORM GST REG-03 and missed timelines result in deemed approval.

What is the pre-deposit for a GST appeal?

10% of the disputed tax. Circular 259/05/2026 says the refund after a favourable order is claimed through RFD-01, even if the department files a further appeal.

Can BQP help with GST refunds and disputes under these changes?

Yes: inverted duty and export refunds, Rule 96(10) relief, show cause notice replies and appeals. Email durgesh@bharatquantumprospera.com or WhatsApp +91 78018 87130. Fixed-scope quote within 48 hours; work delivered remotely.