GST Council Process Reforms 2026: E-Invoicing, ITC and GST Registration

Overview: The GST Council meeting scheduled for October 7, 2026 is set to shift attention from GST rate changes to process reforms. Finance Minister Nirmala Sitharaman has said the meeting will examine issues including e-invoicing, input tax credit (ITC), GST registration and other compliance-related concerns. Industry and tax professionals have also been invited to identify provisions that create unnecessary complexity or may need to be reconsidered.

The next phase of GST 2.0 is moving from the question of tax rates to how the GST system works for businesses on a day-to-day basis. Following the major rate rationalisation undertaken in 2025, the GST Council’s meeting next month is expected to focus on process-related issues such as e-invoicing, input tax credit, GST registration and other compliance bottlenecks. 

The Finance Minister Nirmala Sitharaman has also called on industry and tax professionals to identify provisions that create unnecessary complexity or may no longer serve their intended purpose. For businesses, such changes can have a direct impact on invoicing systems, Input Tax Credit reconciliation, registration procedures, documentation and the handling of GST disputes.

What GST Process Reforms Could Be Discussed?

The Finance Minister has said that the October 7 GST Council meeting will take up process reforms under GST 2.0. The issues currently being discussed include:

• E-invoicing: There has been discussion around extending e-invoicing to a wider group of taxpayers, including composition-scheme dealers. This remains a matter for consideration and is not an approved change at present.
• Input Tax Credit: Rationalisation or simplification of ITC provisions is among the issues being considered, particularly where existing rules create procedural difficulties for businesses.
• GST registration: Faster and simpler registration procedures are also being discussed, including measures relevant to larger businesses.
• GST litigation: Process-related difficulties faced by taxpayers in disputes and appeals are also part of the wider reform discussion.
• Other GST anomalies: The Finance Minister has invited industry bodies, tax professionals and researchers to identify provisions that create unnecessary complexity or may no longer serve their intended purpose.

These are areas under discussion and consideration should not be treated as changes to the law until the GST Council makes recommendations and the relevant amendments, notifications, circulars or other legal measures are issued.

Why Do These GST Reforms Matter to Businesses?

GST compliance involves much more than calculating and paying tax. Businesses must generate compliant invoices, reconcile transactions and ITC, maintain records, file returns and respond to notices or disputes.

Any change to these processes can therefore affect accounting systems and the cost and time involved in routine GST compliance.

The existing e-invoicing mandate applies to taxpayers with aggregate annual turnover of ₹5 crore or more, subject to the notified conditions and exemptions. The ₹5 crore threshold has applied from 1 August, 2023.

The possibility of extending the framework further is now part of the process-reform discussion, but businesses should continue following the rules currently in force.

Industry Asked to Identify GST Anomalies

The government has also asked industry bodies, tax professionals and researchers to identify GST provisions that may create avoidable compliance difficulties or no longer serve their intended purpose.

This consultation is significant because many GST issues arise at the operational level. A provision may appear straightforward on paper but create difficulties when businesses have to implement it through accounting software, invoicing systems, reconciliations and return filings.

The October discussion could therefore provide an opportunity to address some of these practical gaps. However, the outcome will depend on the recommendations ultimately made by the GST Council and the subsequent legal and administrative action.

What Should Businesses Do Now?

Businesses should not change their GST compliance processes merely on the basis of proposed reforms. Until a change is formally notified or otherwise brought into effect, the existing GST framework continues to apply.

Businesses should nevertheless:

• Continue complying with applicable e-invoicing requirements.
• Reconcile sales, invoices and ITC records regularly.
• Keep GST registration and business details updated.
• Maintain proper supporting documents for ITC claims.
• Review recurring GST notices and procedural difficulties.
• Monitor GST Council recommendations and subsequent CBIC notifications and circulars.

For businesses, the practical impact of the October meeting will depend on what changes, if any, are ultimately recommended and implemented.

FAQs

Setindiabiz Support

The proposed GST process reforms bring GST compliance, e-invoicing, input tax credit reconciliation and GST registration back into focus for businesses.

Setindiabiz experts help businesses review their GST registration details, invoicing processes, ITC records and return-related compliance so that their GST processes remain aligned with the applicable requirements. To make your business fully GST compliant, speak to SetIndaibiz experts right away.

For businesses, the immediate priority is to follow the rules currently in force while keeping track of any recommendations made by the GST Council and subsequent notifications or circulars issued by the tax authorities.