CBIC issues Circulars dated October 26, 2026, clarifying various issues such as Registration, Appeals, ISD, etc.

Circular No. 257/03/2026-GST: Issues detailed guidelines, FAQs and a checklist of documents for applicants seeking GST registration. It emphasises accurate and complete disclosure of information relating to PAN, legal name, constitution of business, principal place of business and authorised signatory to minimise queries, delays and rejections, while ensuring due diligence to prevent fraudulent registrations and misuse of ITC.

Circular No. 258/04/2026-GST: Prescribes guidelines for demand, adjudication and appeal proceedings under the CGST Act. It emphasises the issuance of pre-SCN intimation in FORM GST DRC-01A wherever feasible and requires SCNs to clearly specify the allegations, facts, evidence and relevant legal provisions. Adjudicating and appellate authorities must consider the taxpayer’s submissions and evidence, record specific findings on material issues and pass reasoned orders in compliance with the principles of natural justice.

Circular No. 259/05/2026-GST: Clarifies the computation of pre-deposit under Sections 107(6) and 112(8) of the CGST Act. The admitted amount of tax, interest, fine, fee and penalty must be paid in full, while the 10% pre-deposit is calculated on the disputed tax component. For an appeal before GSTAT, where the Appellate Authority has modified the liability, the additional pre-deposit is calculated on the disputed tax liability confirmed by that authority. An appellate order granting relief need not expressly direct refund of the pre-deposit for the refund to be processed.

Circular No. 260/06/2026-GST: Clarifies various issues concerning Input Service Distributor (ISD) provisions. Each separately registered person receiving input service invoices for distribution to distinct persons is required to obtain ISD registration, and multiple ISD registrations within the same State/UT are permissible. ITC must be distributed to the relevant distinct persons in accordance with the prescribed provisions. The Circular also clarifies compliance requirements concerning ITC eligibility, reverse-charge supplies and the consequences of excess or incorrect distribution of credit.

Circular No. 261/07/2026-GST: Clarifies the applicability of the 50% ITC availment option under Section 17(4) to banking companies, financial institutions and NBFCs. Registrations not engaged in accepting deposits or extending loans or advances cannot opt for this provision. Where a qualifying registration opts for Section 17(4), other qualifying registrations of the same entity must also comply. The Circular further clarifies the applicability of the second proviso and the reporting, reversal and subsequent reclaiming of ITC in FORM GSTR-3B.

Circular No. 262/08/2026-GST: Withdraws paragraph 4.6 of Circular No. 231/25/2024-GST, which denied ITC on demo vehicles to authorised dealers operating under the dealer-agency model. It clarifies that ITC on such demo vehicles is not blocked under Section 17(5)(a) of the CGST Act, recognising that demo vehicles facilitate the further supply of similar motor vehicles under both dealer-agency and traditional dealership models.

Circular No. 263/09/2026-GST: Clarifies that export proceeds received in convertible foreign exchange or eligible repatriable INR accounts, including SNRR and INR Nostro accounts, satisfy the payment condition for export of services. RBI-compliant set-offs of export receivables against import payables and the net-retention mechanism used by reinsurance brokers are also recognised. For export of goods, the realisation period is governed by the applicable RBI directions under FEMA, and refund recovery under Rule 96B is not to be made where the authorised dealer bank has written off the realisation requirement wholly or partly.

Circular No. 264/10/2026-GST: Clarifies that the omission of Rule 96(10) of the CGST Rules applies retrospectively from 23 October 2017, in accordance with the Supreme Court’s judgment in Goodluck India Limited v. Union of India. Accordingly, pending proceedings relating to Rule 96(10) must be dealt with in accordance with the judgment. The same treatment applies, mutatis mutandis, to the omission of Rules 89(4A) and 89(4B).

Circulars dated 26.10.2026 (257-264).pdf