GST Council May 2026: What changed and what every business should do this week
By Mansi Khurana & Siddharth Venkateshwaran · · GST
KAMRIT runs gst engagements end to end with senior expert accountability and transparent fixed-fee pricing across India.
The GST Council met earlier this month and pushed through a set of decisions that will hit invoicing, input tax credit, and refund processing. KAMRIT clients across Delhi, Noida, Mumbai, Bengaluru, and Hyderabad have started rolling out the changes already. Below is the practical guidance we are giving on live engagements.
Rate moves to act on this week
A handful of HSN codes saw rate revisions that take effect this quarter. The biggest impact is on businesses with stock on hand at the rate transition: the relevant CBIC notification clarifies the input-tax-credit treatment, but the working capital impact is real. KAMRIT clients should reconcile open stock against the new rate within seven working days and update master data on their billing systems before the next filing cycle.
Input tax credit reconciliation
GSTR-2B reconciliation has tightened. Where the GSTR-2B does not match books, the credit is increasingly being reversed by the system, not by the taxpayer. The defensible position is to reconcile every line, every month, and to keep contemporaneous documentation for any credit not claimed against books.
E-invoicing threshold update
The e-invoicing turnover threshold has been moved again in the latest notification. Businesses just above and just below the new threshold are most at risk of getting it wrong. Our advice: assume you are in scope and run the IRN generation on the next billing cycle as a dry run, then formally adopt if the threshold applies.
Refund processing timelines
Refund processing on the SEZ and inverted-duty-structure tracks has visibly improved over the last quarter, but only for files with clean documentation. KAMRIT continues to file RFD-01 with full backing from day one rather than after the first deficiency notice.
What to do this week
Reconcile current stock against the new rates. Re-run your GSTR-2B reconciliation against books for the last quarter. Confirm e-invoicing applicability under the new threshold. Update master data on your billing system. If any of these is non-trivial, KAMRIT can run the workstream as a one-off engagement.
Talk to a senior expert
If this affects your business, send a quick brief to KAMRIT. A senior partner replies within one business day with a written view and a fixed-fee quote if remediation work is required. Browse the full GST services catalogue for related capabilities.
Co-Author - Siddharth Venkateshwaran, Senior Associate, Tax Audit & Assurance
Frequently asked
How does this affect KAMRIT clients on a monthly retainer?
KAMRIT clients on a monthly compliance retainer see the relevant changes baked into the next monthly close pack automatically. There is no separate fee for incorporating regulator changes into routine compliance.
What if my business is borderline on the new threshold or rule?
Borderline cases are where KAMRIT adds the most value. We document the position contemporaneously, apply the conservative interpretation where the rule is ambiguous, and back the position against the leading judicial precedents.
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