GST Council removes officers' arrest powers, raises prosecution threshold to Rs 5 crore
At its 57th meeting on 8 October 2026, the GST Council approved removing tax officers' power of arrest under the CGST Act, raising the threshold for launching prosecution from Rs 1 crore to Rs 5 crore, and cutting the general penalty from Rs 25,000 to Rs 10,000. The Council also restricted highway vehicle inspections to cases backed by specific intelligence, to be authorised only by an officer at or above the rank of Joint Commissioner.
Background. The GST Council, set up under Article 279A of the Constitution, is the joint Centre-state body, chaired by the Union Finance Minister with state finance ministers as members, that decides GST rates and administrative rules. Section 69 of the Central Goods and Services Tax Act, 2017 currently empowers tax officers to arrest a person for specified serious GST offences, the power the Council has now recommended removing.
For Prelims, remember
- The GST Council was constituted under Article 279A of the Constitution, inserted by the 101st Constitutional Amendment Act, 2016.
- Section 69 of the CGST Act, 2017 empowers tax officers to arrest a person for specified serious GST offences, a power the 57th GST Council meeting recommended removing.
- The 57th GST Council meeting, held on 8 October 2026, raised the threshold for launching GST prosecution from Rs 1 crore to Rs 5 crore.
UPI merchant discount rate rollout likely deferred to January 2027
The rollout of the new merchant discount rate (MDR) framework for Unified Payments Interface (UPI) transactions is likely to be deferred to 1 January 2027, instead of the earlier proposed 15 October 2026 date, to give merchants more time during the festive season, people familiar with the matter said. The framework itself is unchanged: a 0.4 per cent MDR on person to merchant UPI transactions above Rs 2,000, capped at Rs 300 for payments of Rs 75,000 or more. The deferral comes after the Supreme Court, on 28 September 2026, refused to stay the Centre's decision to impose the charge.
Background. The merchant discount rate is the fee a merchant's bank charges for processing a digital payment, historically waived on UPI person to merchant transactions to encourage adoption. UPI is operated by the National Payments Corporation of India under the oversight of the Reserve Bank of India.
For Prelims, remember
- The new UPI MDR framework proposes a 0.4 per cent charge on person to merchant UPI transactions above Rs 2,000, capped at Rs 300 for payments of Rs 75,000 or more.
- The Supreme Court, on 28 September 2026, refused to stay the Centre's decision to impose MDR on UPI transactions.
- UPI (Unified Payments Interface) is operated by the National Payments Corporation of India (NPCI).
Government moves to cap cancer drug trade margins at 30%, could cut prices by up to 70%
The Department of Pharmaceuticals is moving to cap trade margins on expensive cancer medicines, including some patented drugs, at 30 per cent over the cost to distributors, a measure that could cut maximum retail prices by as much as 70 per cent. A committee headed by the Director General of Health Services is drawing up the list of medicines to be covered, with the measure expected to take effect within ten days. The move builds on a 2019 pilot that capped trade margins on 42 cancer medicines, but this time targets only the costliest drugs, since a 30 per cent cap on cheaper medicines could discourage companies from marketing them at all.
Background. Trade margin is the difference between a drug's price to the distributor and its maximum retail price, and regulating it is one of the tools India uses to control medicine prices alongside the National Pharmaceutical Pricing Authority's price ceilings under the Drugs (Prices Control) Order. The Department of Pharmaceuticals, under the Ministry of Chemicals and Fertilizers, first piloted a trade margin cap on cancer drugs in 2019.
For Prelims, remember
- The Department of Pharmaceuticals, which is proposing the new cancer drug trade margin cap, functions under the Ministry of Chemicals and Fertilizers.
- A 2019 pilot scheme had already capped trade margins on 42 cancer medicines in India.
- The new measure proposes capping trade margins on select expensive cancer drugs at 30 per cent over the cost to distributors.
Centre to release AI regulation consultation paper within a month, says Vaishnaw
Union IT Minister Ashwini Vaishnaw said, on 8 October 2026, that the Centre will release a consultation paper on artificial intelligence regulation within a month, focused on AI safety, deepfakes, and keeping AI led change inclusive. The consultation is expected to examine the autonomy that should be permitted to agentic AI systems, which independently plan and execute multi step actions, and the liability of AI platforms and developers for content their models generate. Vaishnaw said the bulk of the responsibility for managing AI's risks has to rest with industry.
Background. India has so far regulated AI through piecemeal rules rather than a dedicated law, including an April 2026 mandate requiring social media platforms to continuously label AI generated content. Agentic AI refers to autonomous AI systems that, given a high level goal, independently plan and execute multi step actions with minimal human supervision.
For Prelims, remember
- In April 2026, the Indian government mandated that social media platforms continuously label AI generated content.
- Ashwini Vaishnaw is the Union Minister for Information Technology, who announced the upcoming AI regulation consultation paper.
- Agentic AI refers to autonomous AI systems that independently plan and execute multi step actions toward a high level goal with minimal human supervision.
Nobel Prize in Literature 2026 awarded to Anne Carson
The Swedish Academy awarded the 2026 Nobel Prize in Literature to Canadian poet, essayist and classicist Anne Carson, "for her bold and inventive oeuvre that, in playful dialogue with the classical tradition, has created new forms for contemporary literature." Carson is known for works including Autobiography of Red and Nox. She joins past laureates including Rabindranath Tagore and last year's winner, Hungarian novelist Laszlo Krasznahorkai.
Background. The Nobel Prize in Literature has been awarded by the Swedish Academy in Stockholm since 1901, for an author's outstanding body of work rather than a single title. Rabindranath Tagore, in 1913, remains India's only Nobel laureate in Literature.
For Prelims, remember
- Anne Carson, the 2026 Nobel laureate in Literature, is a Canadian poet, essayist and classicist.
- The Nobel Prize in Literature is awarded by the Swedish Academy in Stockholm, unlike the Peace Prize, which is awarded in Oslo.
- Rabindranath Tagore, who won the Nobel Prize in Literature in 1913, remains India's only Nobel laureate in this category.
US sanctions two Mumbai firms, five Indian nationals over Iran oil trade
The United States, on 8 October 2026, imposed sanctions on two Mumbai based firms, SSPL Solutions Private Limited and Samudra Marine Services Private Limited, and five associated Indian nationals, over their alleged role in facilitating the import of petroleum products from Iran. The action, part of the US State Department's Operation Economic Outcast, also sanctioned ten other entities, six individuals and five vessels linked to Iranian origin petroleum trade. The US Treasury separately sanctioned 17 entities and their shadow fleet vessels.
Background. The United States has maintained sanctions on Iran's petroleum exports since withdrawing from the 2015 Iran nuclear deal, aiming to cut off a key revenue source for Tehran, and periodically extends these sanctions to foreign entities and individuals who trade in Iranian oil regardless of their own country's policy.
For Prelims, remember
- The two Mumbai based firms sanctioned by the US, SSPL Solutions and Samudra Marine Services, were targeted for facilitating the import of Iranian origin petroleum products.
- The US sanctions action is part of the State Department's 'Operation Economic Outcast', targeting trade in Iranian origin petroleum and petrochemical products.
- The US has maintained sanctions on Iran's petroleum exports since withdrawing from the 2015 Iran nuclear deal (JCPOA).
US suspends Infosys, TCS, Wipro, HCL, Microsoft and others from PERM green card programme
The US Department of Labour, on 8 October 2026, suspended Cognizant, Infosys, Tata, Wipro, HCL and Capgemini, along with Microsoft and Adobe, from the Permanent Labour Certification (PERM) programme, which allows employers to sponsor green cards for H-1B visa holders. US Labour Secretary Keith Sonderling, announcing the move alongside Vice-President J.D. Vance, said the department would not accept or process any new or pending PERM applications involving these companies, citing almost three million foreign worker requests and over 230,000 H-1B approvals by these firms since 2009.
Background. The Permanent Labour Certification programme (PERM) is the US Department of Labour process that an employer must complete before sponsoring a foreign worker, typically an H-1B visa holder, for a green card, by certifying that no qualified American worker is available for the role.
For Prelims, remember
- The PERM (Permanent Labour Certification) programme is administered by the US Department of Labour and is a required step before an employer can sponsor a foreign worker for a green card.
- Among the firms suspended from the PERM programme on 8 October 2026 are four Indian IT companies, Cognizant, Infosys, Tata and Wipro, besides HCL, Capgemini, Microsoft and Adobe.
- The PERM suspension announcement was made by US Labour Secretary Keith Sonderling.
India condemns Houthi attacks on Abha and King Khalid airports in Saudi Arabia
India, on 8 October 2026, strongly condemned recent attacks on two airports in Saudi Arabia, Abha International Airport and King Khalid International Airport in Riyadh, calling the targeting of civilian infrastructure "completely unacceptable". The Ministry of External Affairs expressed condolences to the families of those killed and solidarity with the Kingdom of Saudi Arabia. Saudi authorities said the attacks, reportedly carried out by Houthi militants over two days, killed three people and wounded 36.
Background. The Houthi movement, which controls large parts of Yemen, has periodically targeted Saudi Arabia with drones and missiles since Saudi Arabia led a military intervention in Yemen's civil war in 2015.
For Prelims, remember
- The attack on Abha International Airport killed two people and wounded 28, according to Saudi Arabia's General Authority of Civil Aviation.
- The attack on King Khalid International Airport in Riyadh killed one person and injured eight others.
- The Houthi movement, which claimed the attacks, controls large parts of Yemen and has targeted Saudi Arabia since Saudi Arabia's 2015 military intervention in Yemen's civil war.
Read all of 9 October 2026?
Revise the whole month
September 2026 current affairs compilation
214 stories and 175 practice MCQs, sorted subject-wise, with a PDF and answer key.