Summary
- The CBIC has issued Instruction No. 02/2026-GST, effective October 30, 2026, providing temporary relief for taxpayers by prohibiting show cause notices under Sections 73, 74, and 74A for amounts below Rs 10,000.
- This directive also halts further arrests under GST and limits interception of goods to authorized cases based on intelligence.
- However, the Instruction does not repeal existing statutory provisions or bind State GST authorities, leaving some uncertainties in implementation.
- The move aims to reduce low-value litigation and streamline compliance but raises questions about its long-term legal standing and the upcoming legislative changes.
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