15 Big Rules and Changes Taking Effect in October 2026

October 2026 is an important month for taxpayers, businesses and professionals from the perspective of income tax, GST, banking and financial compliance. Several new provisions are taking effect this month, while a number of important compliance activities also require attention.

One of the key developments is the extension of the tax-audit and income-tax return deadlines. Meanwhile, the GST sector is preparing for the 57th GST Council meeting, and businesses should also begin their preparation for the FY 2025-26 annual GST return.

Beyond taxation, taxpayers should also take note of changes concerning property purchases from NRIs, UPI charges, EPF, NPS, bank withdrawals, fixed deposits and digital banking records.

Here are the major October 2026 updates that taxpayers and businesses should keep in mind.

1. Tax Audit Due Date Extended to 21 October 2026

A major update for taxpayers and tax professionals is the extension of the tax-audit report deadline for Assessment Year 2026-27.

Through CBDT Circular No. 07/2026 dated 28 September 2026, the due date for furnishing the tax-audit report has been extended from 30 September 2026 to 21 October 2026 for taxpayers falling within the relevant category specified under Explanation 2 to Section 139(1) of the Income-tax Act, 1961.

The related deadline for filing the Income Tax Return has also been shifted from 31 October 2026 to 21 November 2026.

Who can avail of this extension?

It is important to understand that this extension is not applicable universally to every taxpayer or every type of audit report.

In general, the extended timeline applies to taxpayers belonging to the category where the normal ITR due date was 31 October 2026, including:

Companies required to get their accounts audited and which do not fall under transfer-pricing provisions.
Non-company taxpayers whose accounts are subject to audit under the Income-tax Act or another applicable law, subject to the prescribed conditions.
Firms, LLPs and other entities covered by the relevant tax-audit provisions.
Partners of firms whose accounts are required to be audited, wherever the applicable conditions are fulfilled.
Other taxpayers falling within the relevant category under Explanation 2 to Section 139(1).

A key distinction is transfer pricing. Taxpayers covered by Section 92E follow a separate compliance schedule and are not covered by this particular extension. Their applicable reporting and return deadlines continue according to the transfer-pricing provisions.

What happens to Form 10B and Form 10BB?

Charitable and religious trusts and institutions should also examine the impact of the extended deadline.

Form 10B is the audit report applicable to specified charitable or religious trusts and institutions. Form 10BB applies to other eligible cases. These forms are required to be furnished within the specified timeline linked to Section 44AB.

Accordingly, where the trust or institution falls within the category covered by the revised specified date, the applicable Form 10B or Form 10BB deadline will also move to 21 October 2026.

This should, however, not be confused with Form 10BD.

Form 10BD follows a separate deadline

Form 10BD relates to the statement of donations received by specified charitable institutions. Its normal due date is 31 May immediately following the financial year in which the donations are received.

Therefore, the October tax-audit extension does not change the Form 10BD due date to 21 October.

In summary:

Compliance	October 2026 deadline/status
Tax Audit Report – eligible audit cases	21 October 2026
ITR – eligible audit cases	21 November 2026
Form 10B – eligible cases	21 October 2026, where linked to the specified date
Form 10BB – applicable cases	21 October 2026, where applicable
Form 10BD	Not covered by the extension; normal due date is 31 May
Form 3CEB – Transfer Pricing Report	Not covered by this extension

2. ITR Due Date for Eligible Audit Cases Moved to 21 November

The extension of the tax-audit deadline has also resulted in additional time for filing the Income Tax Return for eligible taxpayers.

The revised deadline has changed from:

31 October 2026 → 21 November 2026

This provides additional time to taxpayers and professionals to complete the audit process, finalise financial statements and file the corresponding income-tax return.

However, taxpayers should remember that this is not a general extension applicable to everyone. Non-audit taxpayers and taxpayers covered by transfer-pricing provisions continue to follow their respective statutory deadlines.

3. 57th GST Council Meeting Scheduled for 7 October 2026

The 57th GST Council meeting, scheduled for 7 October 2026, is another significant development to watch during October.

The meeting is relevant for businesses, taxpayers and GST professionals because various matters concerning GST administration, compliance procedures and taxpayer facilitation may come up for discussion.

However, there is an important distinction between a proposal or recommendation discussed by the GST Council and an actual amendment in GST law.

A GST Council recommendation does not automatically make a new GST rate, rule or compliance requirement effective. Businesses should wait for the relevant notification, circular, amendment or other legal communication before making changes to their accounting and GST compliance processes.

4. Preparation for GSTR-9 and GSTR-9C for FY 2025-26

October is also an important period for businesses to start preparing for their annual GST return for FY 2025-26.

Based on the previous year’s GSTN process, annual-return forms such as GSTR-9 and GSTR-9C are expected to become available during the October period.

Businesses should therefore begin their reconciliation work well before the December deadline instead of waiting until the last month.

Key areas that should be reconciled include:

Books of accounts with GSTR-1
GSTR-1 with GSTR-3B
ITC recorded in books with ITC claimed in GSTR-3B
ITC with GSTR-2B
Reverse Charge Mechanism transactions
Credit and debit notes
Amendments reported in later periods
HSN/SAC details
Exempt, nil-rated and non-GST supplies
Refunds and outstanding demands

For FY 2025-26, the annual-return filing deadline is 31 December 2026, subject to the applicable provisions and any subsequent notification. Current professional guidance also refers to the ₹2 crore threshold for GSTR-9 and ₹5 crore threshold for GSTR-9C.

Practical approach: Businesses should use October to start the GSTR-9/9C reconciliation process rather than postponing the exercise until December.

5. New TDS Compliance for Property Purchase from an NRI

From 1 October 2026, an important compliance change applies to certain property transactions involving a non-resident seller.

When a resident individual or HUF purchases an immovable property from an NRI, the buyer-side TDS compliance process is being modified so that the buyer does not have to obtain a TAN solely for this specified TDS compliance.

Under the revised mechanism, PAN-based reporting and the prescribed form, including Form 141, become important.

It is important to understand that the removal of the TAN requirement does not mean that the TDS obligation has been abolished.

Anyone purchasing property from an NRI should therefore verify the following before completing the transaction:

Whether the seller qualifies as a resident or non-resident.
Whether TDS is applicable under the relevant provision.
The correct TDS rate applicable to the transaction.
PAN details of both parties.
The reporting and prescribed-form requirements applicable from 1 October 2026.

Property transactions involving NRI sellers require particular care because incorrect TDS compliance can result in interest, fees and other tax-related consequences.

6. EPF Wage Ceiling Revised

Another important development concerns the EPF wage ceiling.

The wage ceiling has been increased from ₹15,000 to ₹25,000, effective from 17 September 2026. As a result, employers may need to consider the revised limit while handling October payroll and the related ECR compliance process.

Employers should review their payroll systems and verify employee eligibility, contribution calculations and ECR information before completing the applicable monthly filing.

7. Revised Charges for NPS Services

NPS subscribers should also take note of the updated charges applicable to various NPS services from October 2026.

The changes may be particularly relevant when opening a new NPS account or reviewing the charges associated with services provided through Points of Presence and other intermediaries.

Subscribers should remember that charges may vary between PoP-based NPS accounts and direct/e-NPS channels. The applicable cost depends on the account-opening and service route.

Therefore, users should refer to the applicable PFRDA/NPS charge structure for their specific account instead of relying only on the headline charge.

8. Disclosure of Interest Rates on Bulk Fixed Deposits

Another banking-related change concerns bulk fixed deposits.

Under the revised framework, banks are required to publish the applicable interest rates for bulk deposits on their websites.

This requirement is more relevant to large depositors, companies and institutions than to individuals holding smaller fixed deposits.

Businesses, trusts and other organisations with significant deposits should therefore check the bank’s published bulk-deposit rates before making a fresh deposit or renewing an existing large deposit.

9. SBI BSBD Accounts: Revised Cash Withdrawal Charges

SBI’s revised service-charge provisions for Basic Savings Bank Deposit (BSBD) accounts are also relevant during October.

Under the revised arrangement, BSBD customers are entitled to a specified number of free cash withdrawals. Charges may apply once the permitted free limit has been exceeded.

The reported revised fee is ₹15 plus applicable GST per transaction after the free withdrawal limit.

Customers who make frequent cash withdrawals should check the free transaction limit applicable to their account and refer to the latest SBI service-charge schedule.

10. Revised SBI ATM Transaction Limits

SBI customers should also review the ATM transaction limits applicable from October 2026.

For certain salary-account customers using ATMs belonging to other banks, the number of free transactions is being revised.

After the applicable free limit is exhausted, charges may be imposed on both financial and non-financial transactions, depending on the nature of the transaction and the relevant service-charge rules.

Customers who regularly use other-bank ATMs should therefore verify their applicable free limit rather than assuming that the previous limit remains unchanged.

11. UPI Merchant Transactions and MDR Changes

Another significant payment-related development involves UPI merchant transactions.

Under the reported changes, merchant transactions above the specified threshold may attract MDR under the revised framework from 15 October 2026.

MDR is primarily a cost associated with merchant payment acceptance. It should not be treated as a general fee imposed on normal person-to-person UPI transfers.

Businesses accepting UPI payments should therefore examine the charges applicable through their acquiring bank or payment service provider and assess the potential impact on transaction costs.

Before making changes to customer pricing or accounting treatment, businesses should verify the final applicable regulatory and implementation instructions.

12. LPG Subsidy and Aadhaar-Based Authentication

Consumers who receive LPG subsidy benefits should ensure that their Aadhaar authentication or e-KYC requirements have been completed wherever applicable.

Those who have already completed the required authentication generally do not need to repeat the process simply because October has begun.

Consumers who have not yet completed the applicable authentication should check the latest instructions issued by their LPG provider to avoid any disruption to eligible subsidy benefits.

13. Greater Recognition of Digital Banking Records

Changes concerning the legal framework for bankers’ books and banking records are also relevant to the financial sector.

From October 2026, the framework provides recognition to electronic, digital and certain cloud-based banking records, subject to the applicable prescribed conditions.

The development reflects the increasing shift from traditional physical banking records to digitally maintained information.

For businesses, it also highlights the importance of maintaining accurate electronic records, proper audit trails and dependable data backups.

14. Updated Process for Delayed Birth and Death Registration

The procedure for delayed registration of births and deaths is also undergoing changes.

Under the revised framework, the authority required to approve a delayed registration can vary depending on the length of the delay.

Therefore, applicants should not assume that the same authority or approval procedure applies to every delayed registration case.

The relevant authority, documents and approval process should be confirmed according to the specific period by which the registration has been delayed.

15. October TDS/TCS Compliance Requirements

October is also an important compliance month for TDS and TCS deductors and collectors, particularly in relation to quarterly compliance for the second quarter.

Businesses should ensure that they have:

Deducted TDS correctly.
Properly matched and accounted for challans.
Verified PAN details.
Filed applicable TDS/TCS statements within the prescribed time.
Initiated corrections promptly wherever errors are identified.
Reconciled Form 26AS, AIS and other relevant records wherever required.

As tax compliance continues to become increasingly digital, businesses should also maintain the underlying supporting documents and records in an organised manner.

16. MCA and Annual Corporate Filing Requirements

October can also be an important compliance period for companies and LLPs, depending on their financial year, AGM date and applicable statutory filing timelines.

Companies should review whether they need to complete filings or compliances such as:

AOC-4
MGT-7 / MGT-7A
MSME-related reporting
Director-related compliances
Auditor-related filings
Other applicable event-based MCA forms

There is no common October deadline that applies to every company. The actual due date depends on the entity’s AGM date, financial year and individual statutory circumstances.

Companies should therefore maintain an entity-specific MCA compliance calendar instead of relying on a standard October deadline.

Key October 2026 Dates at a Glance

Date	Important update
1 October 2026	Various banking, NPS, property-TDS and other compliance changes take effect
7 October 2026	57th GST Council Meeting
October 2026	Expected period for GSTR-9 and GSTR-9C availability/preparation for FY 2025-26
15 October 2026	UPI merchant MDR-related implementation
21 October 2026	Extended tax-audit/reporting deadline for eligible taxpayers
21 November 2026	Extended ITR filing deadline for eligible audit cases
31 December 2026	FY 2025-26 annual GST return deadline, subject to applicable provisions

What Should Businesses and Taxpayers Do in October 2026?

October should be viewed not only as a month in which several new provisions take effect, but also as an important preparation period for upcoming compliance deadlines.

Businesses should first determine whether they actually fall within the category eligible for the 21 October tax-audit deadline. Companies, firms, LLPs, trusts, societies and other entities should examine their applicable statutory provisions and return category rather than assuming that the extension automatically applies to them.

Charitable and religious institutions should separately verify their Form 10B or Form 10BB requirements. These should not be confused with Form 10BD, which follows a separate due-date mechanism.

GST-registered businesses should also begin their FY 2025-26 GSTR-9 and GSTR-9C reconciliation once the relevant forms are available on the GST portal. Starting early can help businesses identify discrepancies between books of accounts, GSTR-1, GSTR-3B and input-tax-credit records and resolve them before the annual-return deadline.

Businesses should additionally review October payroll changes, NPS charges, banking service fees, UPI merchant costs and NRI property TDS requirements wherever these are relevant to their operations.

Taking these steps early can help taxpayers and businesses organise their documentation, identify applicable changes and avoid last-minute compliance issues.

Mrs. Snehal Ubale

Sep, Mon, 2026

57th GST Council Meeting: New Schedule and Important GST Changes Expected

The 57th GST Council meeting, which was originally planned for 12 September 2026, has now been rescheduled to 7 October 2026 in New Delhi. The earlier date coincided with the BRICS Leaderan

s’ Summit scheduled to take place in New Delhi on 12–13 September.

The October meeting is expected to be significant as the Council may discuss several GST process and compliance reforms following the major GST rate rationalisation carried out in 2025.

Finance Minister Nirmala Sitharaman has indicated that the meeting is likely to consider process-related reforms, including e-invoicing and input tax credit (ITC) provisions. The government has also sought suggestions from industry stakeholders and tax professionals regarding provisions that may be causing unnecessary complexity or inconsistencies.

However, taxpayers should keep one important point in mind:

Issues being discussed or proposed before the GST Council are not changes in law unless they are subsequently implemented through the required legal, notification or rule-making process.

ITC When the Supplier Fails to Pay Tax — Section 16(2)(c)

One of the key concerns under discussion is the difficulty faced by a genuine purchaser when the supplier does not pay the applicable GST to the Government.

Under the existing provisions of Section 16(2)(c), payment of the tax charged on a supply to the Government is one of the conditions associated with claiming ITC, subject to the applicable statutory framework.

This can create difficulties for a bona fide recipient who has:

received the goods or services;
obtained a valid tax invoice;
made payment to the supplier;
fulfilled the other applicable ITC requirements;

but the supplier has subsequently failed to properly report or deposit the tax.

Industry representatives have therefore been seeking a mechanism that could protect a bona fide buyer from losing legitimate ITC solely because of a supplier’s default. This issue has been highlighted in discussions and reports ahead of the Council meeting.

Review of Blocked ITC Under Section 17(5)

Another major area of discussion is blocked input tax credit under Section 17(5).

The current provision restricts ITC on certain specified goods and services, subject to prescribed exceptions. These include areas such as certain motor vehicles, food and beverages, health-related services, club memberships and other specified categories.

Industry stakeholders have been requesting a review of some of these restrictions.

Although motor vehicle-related ITC provisions may come up for discussion, taxpayers should not assume that ITC will automatically become available after 7 October. Any change would require the appropriate legal process following a Council recommendation.

Inverted Duty Structure and Refund of Accumulated ITC

The inverted duty structure is another important issue that may receive attention.

An inverted duty situation arises when the GST rate applicable to inputs is higher than the GST rate on the final outward supply. This can result in the accumulation of ITC and create a working-capital burden for businesses.

Industry has been requesting changes to the refund mechanism and treatment of accumulated ITC.

Reports ahead of the meeting have identified refund-related provisions and inverted-duty issues among the matters that could potentially be considered.

This issue can be particularly important for businesses where:

GST on Inputs > GST on Outward Supplies

resulting in a continuous accumulation of unused credit.

GST Registration Process — Proposed Simplification

GST registration is another significant area forming part of the broader process-reform discussion.

Businesses have raised concerns regarding:

repeated submission of documents;
differences in requirements between jurisdictions;
physical verification procedures;
delays in registration;
difficulties in cancellation;
additional scrutiny faced by genuine businesses.

The Government has also been working towards a more standardised registration mechanism for larger businesses, particularly businesses having monthly ITC exceeding ₹2.5 lakh.

Simplification of GST Cancellation

The GST registration cancellation process is also expected to be considered as part of the broader reform exercise.

The objective of such reforms would be to make registration and cancellation procedures more streamlined and automated, helping genuine taxpayers avoid unnecessary procedural delays.

E-Invoicing — Possible Expansion and Process Reforms

E-invoicing is another important subject because the Finance Minister has specifically referred to it as part of the GST process-reform agenda for the October meeting.

There has been discussion regarding the possibility of extending e-invoicing to a broader group of taxpayers, including consideration of its applicability to composition taxpayers.

The GST Council may therefore examine further expansion of the e-invoicing framework along with related procedural improvements.

Utilisation of ITC Across Multiple GST Registrations

Another issue that has attracted industry attention is the treatment of unused ITC across different GST registrations of the same business.

For instance, a company may have GST registrations in:

Delhi | Haryana | Maharashtra | Punjab

It may have significant unused ITC under one registration while another registration has an output tax liability.

Under the existing GST framework, the electronic credit ledger of one State registration cannot simply be transferred to another State registration.

Industry has therefore been seeking possible mechanisms to deal with stranded or unutilised ITC across multiple registrations.

Greater flexibility in the utilisation of surplus ITC has been identified in reports as one of the issues that could be considered by the Council.

Online Gaming — Resolution of Legacy GST Issues

Online gaming is another area involving significant legacy disputes and litigation.

Industry stakeholders have been seeking possible solutions for legacy tax issues and ongoing disputes relating to the earlier GST treatment of online gaming.

Reports ahead of the meeting have identified the regularisation of legacy positions in the online gaming sector as one of the concerns that industry may place before the GST Council.

Key Takeaway for Taxpayers

The 57th GST Council meeting on 7 October 2026 could bring discussions on several important GST process reforms, including ITC rules, blocked credits, inverted-duty refunds, registration and cancellation, e-invoicing, cross-registration ITC utilisation and legacy online gaming issues.

However, taxpayers should distinguish between industry representations, proposals and Council discussions and actual changes in GST law.

Any proposal will become applicable only after the necessary recommendation, notification, amendment or rule-making process is completed.

“The GST Council may consider ways to resolve or regularise legacy disputes and pending litigation related to the online gaming sector.”

Compensation Cess — Issue of Stranded ITC

Another significant issue emerging after the GST rate rationalisation is the treatment of unused input tax credit related to compensation cess.

Industry stakeholders have raised concerns regarding compensation cess credit that remains embedded in existing inventory, particularly in sectors such as automobiles.

According to reporting by The Indian Express, automobile dealers have accumulated considerable ITC associated with the now-discontinued compensation cess and are seeking clarity on how this credit should be treated.

The issue is therefore particularly relevant to:

Automobile Dealers + Tobacco Businesses + Other Sectors Affected by the Transition from Compensation Cess

“The treatment of unutilised compensation-cess credit remains an important issue that industry expects the GST Council to examine.”

Another Key Issue: GST Litigation

The October meeting is increasingly being viewed as a process-reform-focused meeting, with reducing unnecessary GST litigation forming an important part of the broader reform agenda.

Finance Minister Nirmala Sitharaman has invited industry stakeholders and professionals to highlight GST provisions that may be creating unnecessary complexity, inconsistencies or anomalies.

The objective is to identify areas where procedural improvements or clarification could make GST compliance simpler and potentially reduce avoidable disputes and litigation.

Mrs. Snehal Ubale

Sep, Sun, 2026