India implements major GST reforms to ease compliance

GST reforms CBIC tax compliance e-commerce registration GST Council

The Central Board of Indirect Taxes and Customs (CBIC) and the GST Council have introduced a series of administrative and regulatory reforms aimed at fostering a trust-based economic environment in India. Effective November 1, 2026, these measures include the withdrawal of arrest powers under Section 69 of the CGST Act, pending legislative amendments.

To reduce litigation and compliance burdens, field formations have been instructed to restrict unnecessary vehicle interceptions for e-way bills and to cease issuing show cause notices for amounts below ₹10,000. Additionally, the monetary threshold for prosecution has been increased fivefold, from ₹1 crore to ₹5 crore.

New rules also simplify registration for small e-commerce sellers. Suppliers without a physical presence in multiple states can now declare an e-commerce operator’s warehouse as their principal place of business, provided their monthly output tax liability does not exceed ₹2.5 lakh. The Confederation of Indian Industry (CII) has hailed these changes as significant institutional reforms that distinguish genuine commercial disputes from deliberate tax evasion.