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Goods & Service Tax (GST) 10 October 2026

GST Council Overhaul: No Arrest Powers, Faster Refunds, E‑Way Bill Surge

The 57th GST Council meeting introduced a sweeping procedural overhaul, eliminating tax officers' arrest powers and raising the prosecution threshold to Rs 5 lakh. It pledged refunds within three days for eligible claims, while e‑way bill generation hit a record 141.5 million in September. Additional reforms include allowing ITC on employer‑provided health and life insurance, keeping mobile phone rates at 18%, and updating service‑rate exemptions for EVs, helicopters and R&D.

The 57th GST Council meeting delivered a major procedural overhaul:
- Arrest powers removed for tax officers; prosecution threshold raised to Rs 5 lakh.
- Refunds promised within 3 days for eligible claims, especially zero‑rated and inverted‑duty supplies.
- E‑way bills surged to a record 141.5 million in September, though growth slowed later.

Other notable changes:
- Employers can now claim input tax credit on health and life insurance premiums for staff. ([source] (https://blog.saginfotech.com/gst-council-allows-employers-claim-itc-health-life-insurance-premiums))
- No tax cut for mobile phones; the GST rate remains 18%. ([source] (https://www.facebook.com/FactTechz/posts/the-gst-councils-october-8-meeting-did-not-announce-a-tax-cut-for-mobile-phones-/1630946631731069/))
- Service‑rate and exemption reforms introduced for EVs, helicopters, R&D and highways. ([source] (https://taxguru.in/goods-and-service-tax/gst-service-rate-exemption-reforms-evs-helicopters-highways.html))

E‑way bill activity
- Record generation of 141.5 million e‑way bills in September, according to the Financial Express. ([source] (https://www.magzter.com/stories/newspaper/Financial-Express-Delhi/EWAY-BILLS-HIT-1415-MN-IN-SEPT-BUT-GROWTH-SLOWS))
- Business Standard also highlighted the September record and the importance of the e‑way bill system. ([source] (https://www.magzter.com/stories/newspaper/Business-Standard/EWAY-BILL-GENERATION-AT-RECORD-HIGH-IN-SEP))

Overall, the council’s decisions aim to ease compliance, speed up refunds, and support key sectors while maintaining existing GST rates for most goods.

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