May 2026 GST Related Advisories and Updates

Common portal of GST under the GST law, GSTN keeps on issuing advisories on new functions/updates on the portal for upgradation of functionalities and new options or functions enabled for implementation by taxpayers.

During the month of May, 2026, the following Advisories have been issued so far in relation to the various compliances by GSTN and other GST Updates by way of Notifications / Circulars / GSTAT Circulars:

• National Appellate Authority for Advance Ruling (See 101A)
• Adjudication of LTU taxpayers post inspection – Tamil Nadu
• Relaxed scrutiny norms for appeal filings on the portal till 31.12.2026
• Classification and allocation of appeals before GST Appellate Tribunal Benches
• Filing of Annexure-B for ITC refund thru offline utility made mandatory
• HSNS Cess Rules amended to simplify approval and accounting procedures
• Enhancements in the E-Way Bill Portal

The gist of these Advisories / Updates is summarized hereunder for easy understanding:

National Appellate Authority for Advance Ruling (See 101A)

• Section 101A provides for constitution of National Appellate Authority for Advance Ruling (NAAAR) to hear appeals arising out of conflicting advance rulings pronounced by AAA’s of States (under section 101B)
• Finance Act, 2026 empowered Central Government to notify any existing Authority for the time being in force to hear such appeals (w.e.f. 01.04.2026).
• Such existing authority could include Tribunal
• Vide Notification No. 18/2024 – Central Tax | Dated: 30th September, 2024, Central Government has notified Principal Bench of GSTAT at New Delhi to hear such appeals filed under section 101B.
• This shall be deemed to have come into force w.e.f. 01.04.2026.

(Source: Notification No. 02/2026 –Central Tax dated 07.05.2026 read with corrigendum dated 08.05.2026)

Adjudication of LTU taxpayers post inspection – Tamil Nadu

• Presently, adjudication under section 73/74/74A of GST law, in respect of LTU taxpayer lies with Proper Officer, Deputy Commissioner (LTU).
• Also, in respect of LTU taxpayers inspected by Intelligence Wing Officer, the adjudication lies with Proper Officer, Assistant Commissioner (ST) / State Tax Officer, as the case may be, based on revenue effect.
• Since now it is desirable that the adjudication of the taxpayer under LTU consequent to the inspection, is also done by Deputy Commissioner (LTU) only, instructions have been issued by Tamil Nadu Government that adjudication in respect of LTU taxpayers inspected by the Intelligence Wing shall also be done by concerned Deputy Commissioner (LTU).
• The adjudication task shall be transferred by the Intelligence wing after issuance of Form GST DRC-01A and along with connected records to the concerned Deputy Commissioner (LTU).
• Further, in respect of LTU taxpayers where GST DRC-01 notice/ personal hearing notice has already been issued by Intelligence Wing, and pending as on date of this circular, the adjudication task shall also be transferred by the Intelligence Wing proper officer to the concerned Deputy Commissioner (LTU).
• An intimation notice shall be issued by the Intelligence Wing Officer under reference number by e-mail (from Official e-mail id) to the registered e-mail id of the taxpayer, to the effect that further adjudication will be done by concerned Deputy Commissioner, (LTU).

 [Source: Circular No. 04/2026 (PP2/GST-15/29/2023) dated 22.04.2026 issued by Commissioner of State Tax, Chennai (TN)]

 Relaxed scrutiny norms for appeal filings on the portal till 31.12.2026

• The GSTAT has extended the earlier lenient scrutiny mechanism for appeals filed on the GSTAT portal up to 31 December 2026 under Rule 123 of Goods & Services Tax Appellate Tribunal (Procedure) Rules, 2025 in continuation of the benefits already granted under:
  • Office Order dated 20.01.2026
  • Instructions dated 10.03.2026
• The instructions recognize practical and technical difficulties faced by taxpayers and professionals during the initial phase of the GSTAT e-filing system. This has been done to ensure smooth transition to digital appellate filing.
• Registry officers should raise only substantive defects and avoid objections for minor procedural/formal defects.
• No defect should be raised if:

Soft copies of important documents are uploaded, such as:

• • Show Cause Notice (SCN)
  • Order-in-Original (OIO)
  • Order-in-Appeal (OIA)
  • Statement of Facts
  • Grounds of Appeal
  • Proof of pre-deposit / court fee

• Digitally generated GSTN documents need not be certified.
• Scanned certified copies are acceptable if the endorsement clearly shows certification by the issuing authority.

(Source: Instructions F.No. GSTAT/Pr.Bench/Portal/125/25-26 dated 14.05.2026)

Classification and allocation of appeals before GST Appellate Tribunal Benches

Goods and Services Tax Appellate Tribunal lays down the framework for how GST appeals will be assigned and heard by GSTAT benches across India. The order was issued by the Principal Bench, New Delhi under Section 109(8) of the CGST Act, Rule 110A of the CGST Rules, and Rule 123 of the GSTAT Procedure Rules, 2025. Following points are to be noted:

• All cases are to be listed first before a Division Bench : Even though smaller matters (below Rs. 50 lakh and involving no question of law) may legally be heard by a Single Bench, the order directs that:
  • Every pending and future appeal must first come before a Division Bench;
  • The Division Bench will decide whether the matter involves any question of law;
  • Only then can it be transferred to a Single Bench through the President/Vice-President.

• Three-category classification of GST appeals:

(Source: OFFICE ORDER No. 3/GSTAT/PB/2026 dated 14.05.2026)

Filing of Annexure-B for ITC refund thru offline utility made mandatory

GSTN has issued an advisory informing mandatorily requirement of filing of Annexure-B at GSTN portal for refund applications under specific categories involving accumulated ITC to be effective from 18^th May 2026, and has further prescribed instructions for filing such refund applications and key instructions are summarised below :

• Taxpayers are now mandatorily required to furnish the revised Annexure-B through the prescribed offline utility for refund categories related to Export of goods/services without payment of tax, supplies made to SEZ without payment of tax, ITC accumulated due to inverted duty structure and export of electricity without payment of tax
• Annexure-B is to be uploaded in JSON format generated from the utility, instead of the earlier manual statements/PDFs
• The revised utility captures detailed inward supply with invoice level information relating to ITC claimed in refund applications.
• The utility enables duplicate document validation for each type of inward supply based on supplier GSTN, invoice number, invoice date, category of input supply and HSN/SAC code. Uploaded invoices are also validated with GSTR-2B.
• Taxpayers are required to correctly report ITC reversals u/s 17(5) and CGST prescribed Rules 38, 42 and 43 of CGST Rules, 2017.
• A specific note has been added in the Read me section of the utility for taxpayers guidance.

(Source: GSTN Advisory dated 18.05.2026)

HSNS Cess Rules amended to simplify approval and accounting procedures

• CBIC has amended the Health Security se National Security Cess Rules, 2026 with immediate effect which provides as follows:
• Rule 35(3) omitted
• In Rule 35(5), the requirement relating to consultation with the Budget Division, Department of Economic Affairs has been removed.
• In Rule 35(6), authority reference has been simplified by replacing approval requirements involving the Principal Chief Controller of Accounts, CBIC and C&AG with Chief Controller of Accounts (Finance).
• These rules shall be applicable w.e.f. 20.05.2026.

(Source: Notification No. 03/2026-HSNS CESS dated 20.05.2026)

Enhancements in the E-Way Bill Portal

The GST E-Way Bill system has introduced several enhancements to improve compliance, reduce duplication, and simplify transportation-related processes. Key changes are:

Auto Calculation of Distance Based on PIN Codes

• Distance between supplier and recipient locations is now auto-populated using PIN codes.
• Taxpayers can enter up to 10% additional distance beyond the system-calculated value.
• Helps reduce manual errors and misuse.

“One Invoice – One E-Way Bill” Rule

• Multiple E-Way Bills cannot be generated for the same invoice/document number.
• Once an E-Way Bill is generated, the system blocks duplicate generation by consignor, consignee, or transporter.

Extension of Validity During Transit/Movement

• Validity of E-Way Bill can now be extended when goods are:

• • in movement, or
  • in transit (warehouse/transport hub/etc.).

• User must update transport details and transit status on the portal before expiry.

Expiry Tracking Facility

• Portal provides reports of E-Way Bills nearing expiry.
• Helps transporters and businesses avoid invalid movement of goods.

Vehicle Number Validation

• Integration with the VAHAN database validates vehicle registration numbers entered in E-Way Bills.
• Incorrect or non-existing vehicle numbers trigger alerts.

Multi-Vehicle Movement Facility

• One E-Way Bill consignment can be moved in multiple vehicles after transshipment.
• Useful for hilly areas, logistics hubs, or route changes.

Composition Dealer Restrictions

• Composition taxpayers are restricted from generating interstate E-Way Bills where not permitted under GST law.
• Certain document/tax fields are also restricted.

E-Way Bill 2.0 / Dual Portal System

• New interoperable portal allows generation, extension, update, and printing from either portal.
• Real-time synchronization improves system availability and reduces downtime risk.

(Source: GSTN Advisory dated 21.05.2026)