Published 01 Feb 2026Effective 01 Apr 2026
At a glance
- •GSTAT benches operational by 30-Jun-2026
- •Pre-deposit cap of ₹20 crore for tribunal appeals
- •Move toward 5/15/28 three-slab GST structure
- •Hotels ₹7.5k-₹15k tariff: 28% → 18%
- •Lithium-ion EV cells customs: 10% → 5%
The biggest indirect-tax announcement is the operationalisation of GSTAT principal and state benches by 30 June 2026 — clearing a ~₹1.5 lakh crore appeals backlog. A pre-deposit cap of ₹20 crore per appeal applies.
The rate structure moves toward three slabs: 5%, 15% (merged 12+18) and 28%, expected over FY 26-27. As an interim step, several services move from 18% to 15% (training/skilling) and from 28% to 18% (mid-segment hotels with tariff ₹7,500-15,000).
Customs duty on lithium-ion cells for EV batteries drops from 10% to 5%; on raw materials for medical devices, BCD is rationalised to 2.5%. The Compensation Cess on coal is rolled into the Clean Energy Cess on extraction, simplifying the chain.
Who is impacted
ExportersAuto OEMsHospitalityLitigants