GST Calendar –Compliances for the month of May ’2026

Nature of Compliances	Due Date
GSTR-7 (Tax Deducted at Source ‘TDS’)	June 10, 2026
GSTR-8 (Tax Collected at Source ‘TCS’)	June 10, 2026
GSTR-1	June 11, 2026
IFF- Invoice furnishing facility (Availing QRMP)	June 13, 2026
GSTR-6 Input Service Distributor	June 13, 2026
GSTR-2B (Auto Generated Statement)	June 14, 2026
GSTR-3B	June 20, 2026
GSTR-5 (Non-Resident Taxable Person)	June 20, 2026
GSTR-5A (OIDAR Service Provider)	June 20, 2026
PMT-06 (who have opted for QRMP scheme)	June 25, 2026

 

The May 2026 issue of our GST Compendium provides a comprehensive overview of significant judicial developments, important GSTN advisories, updates under Customs and the Foreign Trade Policy (FTP), as well as technology-driven compliance initiatives that have a bearing on business processes and indirect tax implications.

The publication covers noteworthy developments concerning eligibility and availment of input tax credit, registration-related matters under GST, principles governing classification of supplies, taxation issues arising from supplies between Special Economic Zones (SEZs) and the Domestic Tariff Area (DTA), export promotion schemes, faceless customs assessments, and technology-enabled regulatory processes. It further reviews recent initiatives aimed at enhancing trade efficiency and examines international policy trends that continue to influence cross-border commerce and the administration of indirect taxes.

 

Major Takeaways from the GST Compendium – May 2026

Regulatory and Administrative Developments:

GSTN has rolled out an important enhancement to the appellate filing mechanism by allowing taxpayers to revise the pre-deposit amount while submitting appeals through Form GST APL-01. Effective from 6 April 2026, the GST portal permits modification of the pre-deposit field, thereby providing greater flexibility to taxpayers in determining the appropriate amount based on the facts and circumstances of individual cases.

Notable Judicial Rulings:

The Gujarat High Court has reaffirmed the validity of Section 16(2)(c) of the CGST Act, holding that entitlement to input tax credit is intrinsically linked to the actual remittance of tax to the Government by the supplier. Consequently, disallowance or reversal of credit on account of non-payment of tax by the supplier was upheld as being consistent with the statutory framework of GST.

GSTAT Continues Relaxed Defect-Scrutiny Framework for E-filed Appeals Until 31 December 2026

To facilitate a seamless transition to the newly introduced electronic filing system before the Goods and Services Tax Appellate Tribunal (GSTAT), the Tribunal has extended the operation of the simplified scrutiny mechanism for appeals filed through the GSTAT portal up to 31 December 2026. The extension has been granted under Rule 123 of the Goods and Services Tax Appellate Tribunal (Procedure) Rules, 2025 and follows the relief measures previously introduced through the Office Order dated 20 January 2026 and the Instructions dated 10 March 2026.

The decision takes into account the practical challenges and technological constraints encountered by taxpayers, authorised representatives, and professionals during the initial implementation phase of the GSTAT digital filing platform. The objective is to reduce procedural bottlenecks and promote efficient disposal of appeals through a user-friendly electronic process.

Under the revised framework, Registry officials have been directed to confine scrutiny primarily to material and substantive deficiencies and refrain from raising objections on account of insignificant procedural or technical irregularities. Appeals should not be treated as defective merely because of minor formatting or documentation issues where the essential records have been furnished.

Further, no defect memo is required to be issued where the appellant has uploaded electronic copies of key appeal documents, including: –

• The Show Cause Notice 
• Adjudication order
• Appellate order
• Statement of facts
• Grounds of appeal
• Evidence of payment of the prescribed pre-deposit or applicable fees.

The instructions also clarify that documents generated electronically through the GST system are not required to be separately authenticated. In addition, scanned copies of certified documents shall be accepted, provided the certification by the issuing authority is clearly discernible from the uploaded record.

Framework for Classification and Allocation of Appeals Before GSTAT Benches

The Goods and Services Tax Appellate Tribunal (GSTAT) has prescribed a structured mechanism for allocation and hearing of appeals before its Benches across the country. The framework has been notified by the Principal Bench, New Delhi in exercise of powers conferred under Section 109(8) of the CGST Act, 2017 read with Rule 110A of the CGST Rules and Rule 123 of the GSTAT (Procedure) Rules, 2025.

A key feature of the framework is that all pending and future appeals shall initially be placed before a Division Bench. While certain matters involving an amount below the prescribed threshold and not raising any substantial question of law may be heard by a Single Bench, the determination of such eligibility shall first be made by the Division Bench. Upon satisfaction that the matter is fit for disposal by a Single Bench, the case may be transferred with the approval of the President or Vice-President of the Tribunal.

For administrative convenience and effective case management, appeals have been categorised into three broad classes:

Category I – Core Tax Disputes: Matters involving classification, exemption, input tax credit, valuation, time of supply, determination of tax liability, and proceedings under Sections 73 and 74 of the CGST Act, including cases involving fraud, suppression, or wrongful availment of credit.

Category II – Procedural and Compliance Matters: Disputes relating to registration, cancellation of registration, composition levy, refunds, recovery proceedings, provisional assessments, and other compliance-related issues.

Category III – Ancillary and Consequential Proceedings: Matters concerning seizure, confiscation, provisional attachment, rectification of orders, penalties, compounding applications, and requests for payment of dues in instalments.

The Tribunal has further clarified that ancillary or consequential proceedings should ordinarily be assigned to the same Bench that is seized of the principal dispute, thereby promoting consistency in adjudication and administrative efficiency.

 

Key Enhancements Introduced in the E-Way Bill System

The GST E-Way Bill framework has undergone a series of technology-driven enhancements aimed at strengthening compliance controls, improving data accuracy, and facilitating seamless movement of goods. These measures are intended to reduce manual intervention, prevent duplication of records, and enhance operational efficiency for taxpayers and transporters.

One of the significant changes is the introduction of automated distance calculation based on the PIN codes of the consignor and consignee locations. The system now auto-populates the travel distance, while permitting taxpayers to declare an additional distance within the prescribed tolerance limit, thereby minimizing errors and ensuring greater consistency in E-Way Bill generation.

To curb duplication and misuse, the portal has implemented a “One Invoice – One E-Way Bill” validation mechanism. Under this control, once an E-Way Bill has been generated against a particular invoice or document number, the system restricts the generation of multiple E-Way Bills for the same transaction.

The portal has also enhanced the process relating to extension of E-Way Bill validity. Taxpayers and transporters may now seek extension where goods are either in transit or continue to remain in movement, subject to updating the relevant transportation details before expiry of the original validity period.

Further, an expiry monitoring facility has been introduced, enabling users to track E-Way Bills approaching their validity deadline. This feature is expected to assist businesses in avoiding disruptions arising from the movement of goods under expired E-Way Bills.

As an additional compliance safeguard, vehicle registration details entered in the E-Way Bill system are now validated through integration with the VAHAN database. Any mismatch or invalid vehicle registration number is flagged by the system, thereby reducing the possibility of erroneous reporting.

The portal also facilitates multi-vehicle transportation of a single consignment following transshipment. This enhancement is particularly beneficial in situations involving logistical constraints, route diversions, transportation through multiple hubs, or movement in geographically challenging regions.

Further restrictions have been incorporated for taxpayers operating under the Composition Scheme to ensure alignment with statutory limitations prescribed under the GST law. Certain interstate movements and transaction-specific functionalities have accordingly been restricted within the system.

Additionally, the introduction of the interoperable E-Way Bill 2.0 ecosystem enables taxpayers to generate, update, extend, and print E-Way Bills through either of the designated portals. Real-time synchronization between the portals is expected to improve system resilience, ensure business continuity, and minimize disruptions arising from portal downtime.

Principal Bench of GSTAT Notified to Hear Appeals Against Conflicting Advance Rulings

Section 101A of the CGST Act, 2017 provides for the constitution of a National Appellate Authority for Advance Ruling (NAAAR) to adjudicate appeals arising from conflicting Advance Rulings pronounced by Appellate Authorities for Advance Ruling (AAARs) of two or more States or Union Territories. Such a mechanism is intended to ensure uniformity in the interpretation and application of GST provisions across jurisdictions.

Pursuant to the amendments introduced by the Finance Act, 2026, the Central Government has been empowered, with effect from 1 April 2026, to designate any existing authority to discharge the functions envisaged under Section 101A, in lieu of constituting a separate National Appellate Authority.

In exercise of the aforesaid powers, the Central Government, vide Notification No. 18/2024 – Central Tax dated 30 September 2024, has notified the Principal Bench of the Goods and Services Tax Appellate Tribunal (GSTAT), New Delhi, to hear and dispose of appeals filed under Section 101B of the CGST Act arising from conflicting Advance Rulings. The notification shall be deemed to have come into force with effect from 1 April 2026.

This development establishes a centralized appellate mechanism for resolving divergent interpretations adopted by different State AAARs, thereby promoting consistency, certainty, and uniformity in the administration of GST laws for businesses operating across multiple jurisdictions.