Below is the summary of Compliance and Enforcement Changes that takes effect from 01.01. 2026. These were issued as part of notifications and circulars released by the CBIC/GST Council in late 2025.
| Notification details | What was the provision prior to issuance of this notification | What is the change? |
|---|---|---|
| Late fee on GSTR‑9 / GSTR‑9C filings after 31st Dec 2025. 01/2026 - Central Tax |
Annual extensions/waivers were possible each year, close to the deadline (often notified by CBIC through notifications). Also, Late fee enforcement was partly discretionary. |
System‑driven enforcement ensures penalties and blocking actions are applied without manual relaxation. From 1st Jan 2026, late fees apply automatically based on turnover slabs. |
| Restriction on ITC mismatches. 03/2026 - Central Tax |
ITC claims could be made provisionally, subject to later reconciliation. If Mismatch is found, Dept would issue notice or demand recovery but not immediate restriction |
ITC will be system‑restricted in real time. GST system matches supplier‑reported invoices in GSTR‑1 with the recipient’s (claimants) ITC claims in GSTR‑3B (based on auto-drafted GSTR‑2B) and only when they align, is ITC allowed. ITC claim restricted to invoices auto‑matched in GSTN portal. Manual claims disallowed. |
| System driven blocking of e-way bills for default wrt filing. 04/2026 – Central Tax |
In case of defaults in filing GSTR-3B or GSTR-1 , earlier the blocking of e-wway bill generation was carried out manually or through departmental intervention. | Businesses with pending returns beyond 2 consecutive periods, cannot generate e‑way bills. GST portal automatically blocks e‑way bill generation, until compliance is restored. |
| Consolidated compliance calendar (MCA + GST). 01/2026 - GST Council |
Separate calendars in the respective portal. Taxpayers tracked GST and MCA deadlines independently. | Integrated calendar view, across MCA and GST portals. Helps businesses avoid missing due dates and improves coordination. |
| Automated suspension of GST registration for non filers. 02/2026 - Central Tax |
Earlier, wrt non-filers the suspension of registration required officer intervention. | GSTN now auto‑suspends taxpayer’s registration if returns are not filed for 6 consecutive months (regular taxpayers) or 2 consecutive quarters (composition taxpayers).Restoration is possible only after compliance. |
| Biometric based Aadhaar authentication for new registrations. 06/2026 - Central Tax |
Currently, Aadhaar authentication is optional or KYC‑based for all applicants. | Mandatory biometric Aadhaar authentication for high‑risk cases among new GST registration applicants (high risk as in flagged by GSTN parameters Prevents fake GSTINs. |
| PAN linked real time validation. 07/2026 - Central Tax |
PAN validation was batch‑based, hence delays were possible. | GSTN cross checks PAN on real time basis (instantly) with Income Tax database before granting registration. In case of any mismatch or duplicate/fake PAN usage, application is blocked instantly. |
| Mandatory e-invoicing threshold reduced. 08/2026 - Central Tax |
At present, e-invoicing is applicable only for turnover > 10 crore | This Threshold is being reduced to ₹5 crore turnover. More taxpayers must issue e‑invoices, ensuring real‑time reporting |
| Automated scrutiny notices. 09/2026 – Central Tax |
Earrlier, Scrutiny notices were manual, officer‑driven. | System auto‑generates scrutiny notices for mismatches between GSTR 1, GSTR 3B, and GSTR 9. Thereby reducing discretion and speeding the enforcement. |
| Risk based audit selection. 10/2026 - Central Tax |
Audit selection was random or manual. | Risk‑based Algorithm that continously monitors tax payer data, flags abnormal ITC claims/turnover spikes/suspicious invoice patterns, for audit or scrutiny. |
| Cross integration with MCA and Customs. 02/2026 – GST Council |
Limited or periodic data verification happened, often requring manual checks or raising departmental requests. | With this change, Real‑time data sharing is enabled between GST, MCA, and Customs. This Allows cross‑verification of turnover, imports/exports, and compliance. |