Beyond tax slabs: FM Sitharaman signals upcoming GST Council push for process reforms
The upcoming proposals, developed in collaboration with state governments, aim to streamline registration, returns filing, refunds, dispute resolution, and input tax credit processing.
- Oct 5, 2026,
- Updated Oct 5, 2026 10:00 AM IST
Union Finance Minister Nirmala Sitharaman announced that the next phase of process reforms under Next-Gen GST will be placed before the GST Council on October 7, focusing on simplifying compliance for taxpayers and reducing operational costs for small businesses.
The upcoming proposals, developed in collaboration with state governments, aim to streamline registration, returns filing, refunds, dispute resolution, and input tax credit processing.
"Under Prime Minister Narendra Modi’s vision, Next-Gen GST was conceived with two connected purposes: to reduce and rationalise rates, and to make compliance easier," Sitharaman wrote in a detailed post on LinkedIn.
In the column, titled “Next-gen GST: Taking India’s reform journey forward”, she added "Together, these efforts seek to give households relief, businesses greater certainty and taxpayers a system in which they can fulfil their obligations without avoidable difficulty."
Following the rate rationalisation that took effect on September 22, 2025, the value of reported taxable supplies grew by 25.8% between October 2025 and July 2026 compared to the same period a year earlier. Reported sales to consumers (B2C) also rose by 26.7%.
Official data for the first half of the financial year (April-September 2026) showed strong revenue growth:
- Gross GST collections: Reached ₹12.46 lakh crore, registering an 11.6% growth year-on-year.
- Monthly growth: Collections between June and September recorded double-digit annual growth, accelerating by nearly 15%.
- Refunds disbursed: Total refunds stood at approximately ₹1.80 lakh crore, with net collections rising 10.4%.
- State revenues: Aggregate SGST receipts, including IGST settlements, grew by about 16%.
- Taxpayer base: Active registrations across Central and State jurisdictions reached nearly 1.71 crore at the end of August, up 15% from the previous year. Timely GSTR-3B filings for April–July increased by 12.6%.
The Union Finance Minister highlighted that reported taxable supplies grew across all 11 sector groups and major states, helping small and medium enterprises in Tier-2 and Tier-3 towns expand into national markets.
"GST’s growing maturity gives us a stronger foundation for the next stage of reform," Sitharaman noted, adding that the principles of clarity and certainty will also guide the government's work on direct taxes to support the vision of a Viksit Bharat.
Union Finance Minister Nirmala Sitharaman announced that the next phase of process reforms under Next-Gen GST will be placed before the GST Council on October 7, focusing on simplifying compliance for taxpayers and reducing operational costs for small businesses.
The upcoming proposals, developed in collaboration with state governments, aim to streamline registration, returns filing, refunds, dispute resolution, and input tax credit processing.
"Under Prime Minister Narendra Modi’s vision, Next-Gen GST was conceived with two connected purposes: to reduce and rationalise rates, and to make compliance easier," Sitharaman wrote in a detailed post on LinkedIn.
In the column, titled “Next-gen GST: Taking India’s reform journey forward”, she added "Together, these efforts seek to give households relief, businesses greater certainty and taxpayers a system in which they can fulfil their obligations without avoidable difficulty."
Following the rate rationalisation that took effect on September 22, 2025, the value of reported taxable supplies grew by 25.8% between October 2025 and July 2026 compared to the same period a year earlier. Reported sales to consumers (B2C) also rose by 26.7%.
Official data for the first half of the financial year (April-September 2026) showed strong revenue growth:
- Gross GST collections: Reached ₹12.46 lakh crore, registering an 11.6% growth year-on-year.
- Monthly growth: Collections between June and September recorded double-digit annual growth, accelerating by nearly 15%.
- Refunds disbursed: Total refunds stood at approximately ₹1.80 lakh crore, with net collections rising 10.4%.
- State revenues: Aggregate SGST receipts, including IGST settlements, grew by about 16%.
- Taxpayer base: Active registrations across Central and State jurisdictions reached nearly 1.71 crore at the end of August, up 15% from the previous year. Timely GSTR-3B filings for April–July increased by 12.6%.
The Union Finance Minister highlighted that reported taxable supplies grew across all 11 sector groups and major states, helping small and medium enterprises in Tier-2 and Tier-3 towns expand into national markets.
"GST’s growing maturity gives us a stronger foundation for the next stage of reform," Sitharaman noted, adding that the principles of clarity and certainty will also guide the government's work on direct taxes to support the vision of a Viksit Bharat.