Union Finance Minister Nirmala Sitharaman has highlighted the progress made under the GST regime, saying the next phase of reforms is aimed at making compliance simpler while creating a more supportive environment for businesses and taxpayers.
Linking the reforms with the government's broader Viksit Bharat vision, Sitharaman said India needs an economy where businesses, regardless of their size or location, have the opportunity to grow.
GST was introduced in 2017 to create a common indirect tax framework across the country. After nearly nine years of implementation, the government is now using the experience of taxpayers and States to shape the next stage of the GST system.
Next-Gen GST Focuses on Simpler Compliance
According to Sitharaman, Next-Gen GST was designed around two key objectives — rationalising tax rates and making compliance easier.
The revised GST rates came into effect on 22 September 2025. The government is now preparing the next set of process reforms, which are expected to be placed before the GST Council.
The proposed changes cover areas such as GST registration, return filing, refunds, dispute resolution and the flow of input tax credit.
The broader objective is to reduce the time and cost involved in meeting GST obligations while giving businesses greater certainty.
Taxable Supplies Grow 25.8%
The government has pointed to the growth in reported taxable supplies as an encouraging sign following the GST rate changes.
- Between October 2025 and July 2026, the value of reported taxable supplies increased by 25.8% compared with the same period a year earlier.
- Reported B2C sales also increased by 26.7% during the post-reform period.
Sitharaman said consumer relief and business growth are closely connected. When tax reductions translate into lower prices, households may have more money available for other spending or savings. Increased consumer demand, in turn, supports retailers, suppliers and manufacturers.
GST Collections Rise Despite Rate Rationalisation
The government's revenue figures also indicate continued strength in GST collections.
Gross GST collections reached ₹12.46 lakh crore during April-September 2026, registering an 11.6% year-on-year increase.
Collections recorded double-digit annual growth in each month from June to September. Combined GST collections during these four months grew by nearly 15%.
Net collections, after accounting for refunds, increased by 10.4% during the six-month period.
The figures suggest that taxpayer relief through rate rationalisation has not prevented GST revenues from maintaining their growth momentum.
Growth Reported Across Sectors and States
Another notable aspect of the data is the spread of growth across the economy.
Reported taxable supplies increased across all 11 sector groups and all major States, according to the figures cited by Sitharaman.
For India, where economic activity varies considerably between regions and industries, broad-based growth is particularly important. Greater activity can create opportunities not only for large companies but also for smaller suppliers, distributors and local businesses.
Sitharaman also stressed the importance of enabling enterprises in Tier-2 and Tier-3 cities to reach customers beyond their local markets.
A common GST framework can help businesses expand geographically, while simpler compliance can make it easier for smaller enterprises to manage that growth.
GST Registrations Reach Around 1.71 Crore
The GST taxpayer base has also continued to expand.
GST registrations across Central and State jurisdictions stood at approximately 1.71 crore at the end of August 2026, nearly 15% higher than a year earlier.
Compliance has shown improvement as well. For the April-July 2026 tax periods, GSTR-3B returns filed by their due dates increased by 12.6% compared with the corresponding period last year.
However, the increase in registrations and compliance also means that the tax administration needs to keep pace with taxpayer expectations.
Reliable GST services, clearer guidance and faster resolution of difficulties will be increasingly important as the taxpayer base grows.
Input Tax Credit and Refunds Remain Important for Businesses
For businesses, particularly small and medium enterprises, Input Tax Credit (ITC) has a direct impact on working capital.
The post-reform data showed an increase in the share of tax liability discharged through credits, while accumulated credit declined in relation to taxable supplies.
Sitharaman also highlighted GST refunds, with approximately ₹1.80 lakh crore refunded during April-September 2026.
For businesses, timely refunds can make a meaningful difference to cash flow. Greater predictability in the refund process can help enterprises plan purchases, production and other business expenses with greater confidence.
States Also See Stronger GST Revenue
The benefits of higher GST activity are also visible in State revenues.
Aggregate SGST receipts, including the States' share of IGST settlements, grew by around 16% during April-September 2026.
Stronger State revenues can provide additional resources for infrastructure and public services. These investments can, in turn, improve the environment in which businesses operate and households spend and invest.
This creates a wider economic link between tax reforms, consumer demand, business activity and public investment.
GST Council to Consider Next Phase of Reforms
The next phase of GST process reforms is expected to come before the GST Council on 8 October.
The proposals, developed through consultations with the States, are expected to focus on reducing the practical difficulties faced by taxpayers in areas such as registration, returns, refunds, disputes and input tax credit.
For smaller businesses, even relatively minor compliance requirements can consume significant time and resources. Simplifying these processes could allow them to focus more on running and expanding their businesses.
Focus Shifts From Tax Rates to Taxpayer Experience
With the GST rate changes already implemented, the government's focus is increasingly moving towards how taxpayers experience the system in practice.
Sitharaman said GST's growing maturity provides a stronger base for the next stage of reform. The same emphasis on clarity, certainty and taxpayer convenience is also being reflected in the government's approach to direct taxes.
A tax system that businesses can understand and rely on can make it easier for them to plan investments, expand into new markets and create employment.
For the government's Viksit Bharat vision, the objective is therefore not only to collect taxes efficiently but also to build a tax environment in which businesses across India can grow with greater confidence.
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