Nirmala Sitharaman Signals Next Phase Of GST Reforms, Compliance Simplification
· Free Press Journal
Finance Minister Nirmala Sitharaman has said the next phase of Goods and Services Tax (GST) process reforms will soon come before the GST Council, with the government looking to simplify compliance following the rate changes implemented in September last year.
Writing in a column in The Economic Times, Sitharaman said the reforms have two linked objectives: rationalising tax rates and making compliance easier.
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The measures are aimed at providing relief to households while offering greater certainty to businesses.
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Sitharaman said that reported taxable supplies increased 25.8% between October 2025 and July 2026 compared with the corresponding year-ago period. The growth was recorded across all 11 sector groups and major states.
Gross GST collections stood at ₹12.46 lakh crore during April-September 2026, an increase of 11.6% year-on-year. Collections recorded double-digit annual growth every month from June to September, with receipts during the four-month period rising nearly 15%.
Net GST collections after refunds increased 10.4% during the first half of the financial year.
Business-to-consumer sales rose 26.7% in the post-reform comparison. Sitharaman said lower taxes reflected in prices could leave households with more money for spending or savings, while stronger purchasing power could support demand for businesses.
GST registrations, timely filings increase
GST registrations across central and state jurisdictions reached around 17.1 million by the end of August, nearly 15% higher than a year earlier.
For the April-July 2026 tax periods, GSTR-3B returns filed by the due dates increased 12.6%.
Sitharaman said the improvement also placed greater responsibility on tax authorities to provide reliable services, clear guidance and timely resolution of problems.
Around ₹1.80 lakh crore was refunded during April-September. She said greater predictability in refunds could help businesses plan purchases and production.
The Finance Minister added that simpler GST administration could help small and medium enterprises expand beyond local markets. She also credited states with helping shape the reforms and implement GST Council decisions.