Short answer: the GST Council’s 57th meeting on 8 Oct 2026 recommended a set of changes, and a CBIC member said on 22 Oct 2026 that the ones needing no change in law will start in phases, tentatively from 1 November 2026. Changes that need the law amended are expected from 1 April next year. One item is now notified: from 1 Nov 2026, changes in the Finance Act, 2026 on discounts after a sale, credit notes and some refunds come into force. Nothing below is final for your shop until it is notified, so check with your CA before you change how you file.
What was decided, and when it was said
The 57th meeting of the GST Council was held on 8 Oct 2026 in New Delhi, chaired by the Union Finance Minister, as per the Press Information Bureau (PIB) release of that day. The release lists the Council’s recommendations.
On 22 Oct 2026, Moneycontrol (PTI) reported Sanjay Mangal, Member (GST) of CBIC, saying: “Wherever Act amendments are not required, they will be implemented as soon as possible. Tentatively, these reforms will start from November 1, 2026.” He said they would come in phases, depending on the system changes required, and that changes needing amendments to the law are expected to take effect from 1 April next year.
What is notified for 1 November 2026
As per the Gazette of India, Extraordinary, 26 Oct 2026, Notification 03/2026-Central Tax (S.O. 5791(E)), the Central Government has appointed 1 Nov 2026 as the date on which sections 153 to 155 of the Finance Act, 2026 come into force. The Finance Act, 2026 itself says these sections start on a date the Central Government notifies in the Official Gazette.
Here is what those three sections change in the CGST Act, as per the text of the Finance Act, 2026:
- Section 153, discounts after the sale (CGST section 15(3)(b)): a discount given after the supply stays out of the value of supply only if the supplier issues a credit note for it and the buyer reverses the input tax credit linked to that discount, as per section 34.
- Section 154, credit notes (CGST section 34(1)): a supplier can issue a credit note “where a discount referred to in clause (b) of sub-section (3) of section 15 is given”.
- Section 155, refunds (CGST section 54): provisional refund under section 54(6) is extended to refunds of unutilised input tax credit under clause (ii) of the first proviso to section 54(3), the inverted duty case, which is the refund of tax credit that piles up when the tax on what you buy is higher than the tax on what you sell. Section 54(14), the provision under which no refund is paid below Rs 1,000, will not apply where tax is refunded on goods exported out of India with payment of tax.
For a shop that gives discounts after billing to a GST registered buyer, this means the discount is handled through a credit note, and the buyer’s input tax credit reversal matters. Ask your CA how this applies to your bills.
What the notification does not show
The notification only fixes 1 Nov 2026 as the start date for sections 153 to 155 of the Finance Act, 2026. It does not set any rule, form or portal date. It does not mention the late fee waiver, ARQP, the registration steps or refund automation below. Those stay as recommendations or statements until their own notifications are out.
Notified, approved in principle, or proposed
| Notified | Approved in principle | Proposed or recommended |
|---|---|---|
| Sections 153 to 155 of the Finance Act, 2026 in force from 1 Nov 2026 (Gazette of India, Extraordinary, Notification 03/2026-Central Tax, 26 Oct 2026) | ARQP, an optional annual return with quarterly payment for B2C only taxpayers up to Rs 5 crore, concept note approved in principle (PIB release, 8 Oct 2026) | Late fee waiver for turnover up to Rs 5 crore if filed by the end of the due month (PIB release, 8 Oct 2026) |
| No other notification found in our checks as of 27 Oct 2026; CBIC’s full list was unreachable | Nothing else listed | Registration circular and simplified registration for small e-commerce sellers (PIB release, 8 Oct 2026); automated refund sanction after 1 Nov for future claims, as a CBIC member said (Moneycontrol (PTI), 22 Oct 2026) |
Changes that matter for a small shop
Late fee relief for small taxpayers
The PIB release says the Council recommended a waiver of late fee on a delayed return under section 39(1) of the CGST Act, for taxpayers with turnover up to Rs 5 crore in the preceding financial year, if the delayed return is filed by the end of the month in which it was due. The Moneycontrol report gives the same point from the CBIC member.
ARQP: approved in principle only
The Council approved in principle a concept note for an optional Annual Return Quarterly Payment (ARQP) scheme. As per the PIB release, it is meant for taxpayers with aggregate turnover up to Rs 5 crore in the preceding financial year who supply only to unregistered buyers (B2C). It is a concept note approved in principle, not a notified scheme. Do not change your filing because of it yet.
Registration steps
The PIB release says automatic registration without officer intervention is already granted by the portal under rule 14A of the CGST Rules, where the applicant does not intend to pass on input tax credit of more than Rs 2.5 lakh a month. For other cases, the Council recommended a detailed circular listing the documents and information needed for GST registration. The release also lists a recommendation for simplified GST registration for small sellers on e-commerce platforms.
Refunds
The CBIC member said automated sanction of refunds would begin after 1 November where applicable, for future refund claims, not for claims already pending, as reported by Moneycontrol.
What a small shop should check now
- Note the date you usually file and whether you are ever late. The late fee relief, once notified, is tied to filing within the same month.
- If you sell only to walk in or online buyers without GSTIN, watch for ARQP news, but keep filing as you do today.
- Keep your bills clean. Our guide to the kapde ki dukan ka GST bill format shows what a bill should carry. Jewellery shops can read billing software for a jewellery shop.
- Ask your CA which changes are notified on the date you file.
If you also sell online and are choosing a store, Indi Andaz is one option: no monthly fee, 5% only on delivered online orders, payment processing included. GST applies on the fee. Indi Andaz seller website.
We will update this post once notifications are out. It was written on 26 Oct 2026, updated on 27 Oct 2026, and is not tax advice.
Not sure you need GST registration at all? Read Instagram par bechne ke liye GST chahiye?
FAQ
What GST changes start from 1 November 2026?
Sections 153 to 155 of the Finance Act, 2026, on discounts after a sale, credit notes and some refunds, come into force on 1 Nov 2026 as per Notification 03/2026-Central Tax of 26 Oct 2026. Separately, a CBIC member said on 22 Oct 2026 that reforms needing no change in the law will start in phases, tentatively from 1 November 2026. Check the official notification for each change before acting on it.
Is quarterly GST filing for small shops (ARQP) now in force?
No. As per the PIB release of 8 Oct 2026, the Council approved in principle a concept note for an optional ARQP scheme for B2C taxpayers with turnover up to Rs 5 crore. It is not a notified scheme yet.
Will I pay a late fee if I file a few days late?
The Council recommended waiving the late fee for taxpayers with turnover up to Rs 5 crore if the delayed return is filed by the end of the month in which it was due. Ask your CA whether this has been notified before you rely on it.
Do I still file monthly from November?
Keep filing as you do now unless a notification changes your due dates. Your CA can confirm what applies to your registration.
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Sources: Gazette of India, Extraordinary, Part II Section 3(ii), No. 5573, 26 Oct 2026, Notification 03/2026-Central Tax, S.O. 5791(E), Gazette ID CG-DL-E-27102026-277441 (accessed 27 Oct 2026; the copy we read was hosted on a2ztaxcorp.net because the CBIC page was unreachable); The Finance Act, 2026 (No. 4 of 2026), sections 1(2)(b) and 153 to 155, text of section 153 on a mirror of India Code, indiacode.ecourtsindia.com and the gstindiaonline.com extract of the Finance Act 2026 (neither is an official page) (accessed 27 Oct 2026); Finance Bill, 2026 as introduced in Lok Sabha (Bill No. 3 of 2026), clauses 137 and 138 (the same change that is section 153 in the Act), indiabudget.gov.in (accessed 31 Oct 2026; the Bill is not the Act, so check the Gazette text with your CA); accessed 26 Oct 2026: PIB, “Recommendations of the 57th Meeting of the GST Council”, Ministry of Finance, 8 Oct 2026, pib.gov.in; Moneycontrol (PTI), “GST reforms to be rolled out in phases from November 1, says CBIC member”, 22 Oct 2026.
About the author: Pritam Nandi is the founder of Prilix Labs, the company behind Indi Andaz. He builds Indi Andaz from Ashoknagar Kalyangarh, West Bengal, to help local Indian shops sell online and bill at the counter from one place.
Indi Andaz by Prilix Labs: an online store with UPI, card and COD checkout, plus GST billing at the counter.
Prilix Labs, Ashoknagar Kalyangarh, North 24 Parganas, West Bengal 743222
Email: indiandazsocial@gmail.com
Phone: 8653001257
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