Latest GST Council updates including e-invoicing thresholds, ITC claims, and simplified return filing procedures.
GST Council's Latest Compliance Measures
The 58th GST Council meeting has introduced significant compliance changes effective FY 2026-27. These measures aim to simplify the return filing process, expand the e-invoicing framework, and tighten ITC claim procedures to reduce revenue leakage.
E-Invoicing Threshold Reduced
The e-invoicing mandate now applies to businesses with annual turnover exceeding ₹5 crore (down from ₹10 crore). This means approximately 2 lakh additional businesses must implement e-invoicing infrastructure by April 2026. LaabamOne can help you configure your ERP system for seamless e-invoice generation.
Simplified Return Filing
The new quarterly return scheme for businesses with turnover up to ₹5 crore significantly reduces compliance burden. Monthly payment with quarterly return (QRMP) is now the default for eligible taxpayers, and the annual return threshold has been raised to ₹5 crore.
ITC Claim Tightening
New rules require real-time matching of ITC claims with supplier filings. The 10% provisional ITC rule has been replaced with a 5% cap, and businesses must reconcile ITC claims monthly to avoid reversals. Proper vendor management and supplier compliance monitoring are now critical.
Key Deadlines
- April 1, 2026: New e-invoicing threshold effective
- April 1, 2026: Updated ITC matching rules
- June 30, 2026: Last date for FY 2025-26 annual return
Need help navigating these changes? Our GST compliance team handles filing for 191+ clients across India. Reach out today.