GST Circulars 257 to 264 of 2026: What Businesses in Hitech City, Gachibowli and Kondapur Should Know
Summary of CBIC GST Circulars 257 to 264 dated 26.10.2026 for Hyderabad IT-corridor businesses in Kondapur, Gachibowli and HITEC City: registration, appeals, ITC, exports and rule 96(10).
On 26 October 2026 the CBIC issued eight GST circulars in a single day (Circular Nos. 257/03/2026-GST to 264/10/2026-GST). For a business in Hyderabad’s IT corridor — a software exporter in Gachibowli, a start-up in a Kondapur co-working space, a global capability centre in HITEC City, an NBFC branch in the Financial District — several of them land directly on day-to-day compliance. This note summarises all eight and maps each to the kind of business that is most likely to notice it.
In short: three circulars concern process and litigation (257, 258, 259), three concern input tax credit (260, 261, 262), and two concern exports and refunds (263, 264). Circulars 262 and 264 withdraw or retreat from earlier departmental positions.
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The eight circulars at a glance
| Circular | Subject | Key points |
|---|---|---|
| 257/03/2026-GST | GST registration guidelines | Applicant-side guide to FORM GST REG-01: legal-name match, up to 10 authorised signatories, premises proof by category (own, rented, consent, co-working, SEZ), REG-03 only for three deficiencies, fixed response timelines, Rule 14A simplified registration. |
| 258/04/2026-GST | Demand, adjudication and first appeal | Content of a show cause notice, extended-period allegations, personal hearings, speaking orders, section 161 rectification, scrutiny of first appeals. |
| 259/05/2026-GST | Pre-deposit for appeals | Admitted amount paid in full; pre-deposit of 10% of tax in dispute; Tribunal-stage deposit on the liability confirmed by the Appellate Authority; refund through FORM GST RFD-01; interest by payment date. |
| 260/06/2026-GST | Input Service Distributor | More than one ISD registration allowed; recipient complies with sections 16 and 17; distribution in the month eligibility is prima facie ascertained; rule 54(1A) is a transfer mechanism. |
| 261/07/2026-GST | Section 17(4): banks and NBFCs | Who can opt; entity-wide effect; scope of the second proviso; GSTR-3B sequence through Tables 4(B)(1), 4(B)(2), 4(A)(5) and 4(D)(1); IMS. |
| 262/08/2026-GST | ITC on demo vehicles | Para 4.6 of Circular 231/25/2024-GST withdrawn; ITC on demo vehicles not blocked under section 17(5)(a) for a dealer working on the dealer-agency model. |
| 263/09/2026-GST | Export payment realisation | Receipts through SNRR, INR Nostro and similar repatriable accounts, permitted set-off and reinsurance net retention treated as meeting section 2(6)(iv) of the IGST Act; Rule 96B period follows FEMA / RBI. |
| 264/10/2026-GST | Omission of rule 96(10) | Omission effective retrospectively from 23.10.2017 after the Supreme Court’s ruling in Goodluck India (06.08.2026); same treatment for rules 89(4A) and 89(4B). |
Where each circular is likely to matter in Kondapur, Gachibowli and HITEC City
The table below is an orientation aid. It lists business profiles commonly found across the Kondapur – Gachibowli – HITEC City – Madhapur – Financial District belt and the circular each is most likely to want to read. It is illustrative and not a statement about any particular taxpayer.
| Business profile | Circular | Why it is relevant |
|---|---|---|
| Start-ups and consultancies operating from co-working or serviced offices (Kondapur, HITEC City, Madhapur) | 257 | The Circular sets out the premises documents for each category, including co-working space, and limits the queries an officer may raise at the application stage. |
| Software and IT-enabled services exporters (Gachibowli, HITEC City) | 263 | Clarifies which receipts — convertible foreign exchange, repatriable INR accounts such as SNRR and INR Nostro, permitted set-off — satisfy the payment condition for export of services. |
| Exporters of goods and refund claimants, including those with pending refund disputes | 263, 264 | Rule 96B realisation period follows FEMA; omission of rule 96(10) is treated as retrospective from 23.10.2017 for pending proceedings. |
| Multi-location companies and global capability centres with a head office in the corridor | 260 | Clarifies multiple ISD registrations, who complies with sections 16 and 17, and the same-month distribution requirement. |
| Banks, NBFCs and financial institutions (Financial District, Nanakramguda, HITEC City) | 261 | Prescribes who may opt for section 17(4) and the GSTR-3B reporting sequence; all qualifying registrations of the entity follow the option. |
| Motor vehicle dealers and their service providers in Hyderabad | 262 | Demo vehicles: the dealer-agency model dealer is no longer treated as blocked under section 17(5)(a). |
| Any taxpayer with a notice, order or appeal pending before GST authorities | 258, 259 | Standards for notices, hearings and orders; computation and refund of the appeal pre-deposit. |
Common threads across the eight circulars
The Board is recording what the courts have said. Circular 258 draws on Supreme Court and High Court rulings on notices and adjudication; Circular 264 follows the Supreme Court in Goodluck India Limited; Circular 263 aligns GST with FEMA; Circular 262 withdraws an earlier paragraph on the ground of discriminatory effect.
Procedural fairness is the theme of the first three. The registration Circular limits officer queries; the adjudication Circular asks for notices that carry their particulars and orders that address every submission; the pre-deposit Circular removes inconsistent practice on computation and refund.
Credit mechanics are being clarified and tightened together. The ISD Circular places eligibility on the recipient; the section 17(4) Circular prescribes the GSTR-3B sequence; the demo-vehicle Circular narrows a block.
What changes and what remains open
| Area | Change | Still open |
|---|---|---|
| Registration | Document-by-premises checklist; officer query limits | State-specific fields; ground-level compliance by officers |
| SCN and orders | Detailed drafting standards | Whether taxpayers can rely on the Circular directly |
| Pre-deposit | Admitted vs disputed amount; Tribunal deposit on confirmed liability; refund route | Rate and cap under sections 107(6) and 112(8) to be read from the Act as amended |
| ISD | Multiple ISDs; recipient compliance | Effect on past refund computations under rule 54(1A) |
| Section 17(4) | Option is entity-wide for qualifying registrations | Reconciliation of past inconsistent choices |
| Demo vehicles | Dealer-agency model no longer blocked | Past periods and time limits for re-claim |
| Exports | Repatriable INR routes accepted; Rule 96B period per RBI | Retrospectivity not stated |
| Rule 96(10) | Retrospective from 23.10.2017 for pending proceedings | Closed matters and limitation (litigative) |
Risk view across the eight circulars
| Circular | Where exposure sits | Level |
|---|---|---|
| 257 | Premises-proof mismatch; missed REG-03 reply | High |
| 258 | Notices or orders that depart from the Circular; appeals benefit | High for the department |
| 259 | Wrong admitted / disputed split; incorrect Tribunal deposit | Moderate to High |
| 260 | Distribution not attributable; reversals left with the wrong entity | High |
| 261 | Inconsistent opt-in; wrong table in GSTR-3B | High |
| 262 | Past denials not revisited | Moderate |
| 263 | NRO receipts; non-compliant set-off | High |
| 264 | Closed refund matters | Uncertain |
Frequently asked questions
Are all eight circulars issued under the same power? Each states that it is issued under section 168(1) of the CGST Act, 2017.
Which circular affects pending litigation the most? Circulars 258, 259 and 264 bear directly on pending notices, appeals and refund proceedings.
Do the circulars create new statutory rights? They are clarifications and guidelines under section 168(1); statutory rights arise from the Act and the Rules.
Are any earlier circulars withdrawn? Circular 262 withdraws para 4.6 of Circular No. 231/25/2024-GST dated 10.09.2024.
Where can the circular text be read? On the CBIC website, cbic.gov.in.
Speak to the ComplianceKart team
ComplianceKart is a Hyderabad-based practice where Chartered Accountants, Company Secretaries and Advocates work under one roof on GST, registrations, ROC and FEMA matters, serving businesses across Kondapur, Gachibowli, HITEC City, Madhapur, Kokapet, Nanakramguda and the Financial District. For queries on this article: team@compliancekart.com · 9959536391 · 7th Floor, Pranava Business Park, Innov8, Kondapur, Kothaguda, Miyapur–Gachibowli Road, Hitech City Road, Hyderabad, Telangana 500084.
Disclaimer: This article is a general summary for information and awareness only, based on the text of the CBIC circulars dated 26.10.2026. It is not legal, tax or professional advice and does not create any professional relationship. Positions on contested points may differ; please refer to the circular text on the CBIC website and the relevant provisions of the Act and Rules before acting on any proposition.
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