Comprehensive Amendments to CGST Rules – Registration, Refunds, Returns and ITC - Notification No. 05/2026–CT

CBIC vide Notification no. 5/2026 amends the CGST Rules, 2017, pursuant to the GST Council’s recommendations, with most amendments effective from 1 November 2026 and certain provisions taking effect on specified later dates.

Registration: Introduces Rule 14B, allowing eligible suppliers to obtain registration in a State where they store goods in an e-commerce operator’s warehouse, subject to prescribed conditions, including a monthly B2B output tax limit of ₹2.5 lakh and the operator’s consent. Registration amendment, cancellation, suspension and revocation procedures are also revised, with certain automatic suspension and cancellation provisions effective from 1 April 2027.

Input Service Distributor (ISD): Aligns the rules and forms with the ISD framework, revises the distribution of input tax credit and provides for auto-drafted GSTR-6A. Tables 7 and 11 of GSTR-6 are omitted.

Refunds: Reduces the time for issuing a refund acknowledgement or deficiency memo from 15 days to 10 days, introduces portal-based processing of provisional and final refund orders, and revises the inverted duty structure refund formula to include eligible input services from 1 November 2026 and attributable capital goods ITC from 1 April 2027. It also removes the export turnover cap under Rule 89(4), revises ITC debit sequencing and introduces additional refund declarations and documentation requirements.

Blocking of ITC: From 1 April 2027, Rule 86A requires blocking of credit through an order in FORM GST DRC-26 by the proper officer. The restriction generally lasts until one year from the order or until it is lifted, whichever is earlier. Taxpayers may raise objections in FORM GST DRC-27, followed by an order in FORM GST DRC-28.

GST Returns: Changes the due date for GSTR-5 from the 20th to the 13th of the following month and extends the GSTR-4 annual return due date from 30 April to 30 June for taxpayers opting out of the composition scheme. GSTR-4 and CMP-08 reporting is revised to separately disclose goods, services and specified e-commerce operator supplies under section 9(5). GSTR-9 and GSTR-9C instructions are updated for FY 2025-26 onwards.

E-Way Bills: Extends the railway-related e-way bill provisions to metro railway.

Other Amendments: Revises composition scheme reporting, GST forms and procedures relating to electronic credit ledger restrictions and attachment of property or bank accounts.

central-tax-05-gst-27102026 (1).pdf