Finance Minister Nirmala Sitharaman has stated that the next phase of Goods and Services Tax (GST) reforms will focus on easing tax compliance. The objective is to simplify procedures for taxpayers, provide greater certainty to businesses, and support economic growth.
In an article shared on LinkedIn, Sitharaman stated that the objective of the next-generation GST reforms is to boost economic activity while providing relief to taxpayers. She noted that the changes in GST rates, effective from September 22, 2025, marked the first phase of reforms, while procedural reforms would soon be presented to the GST Council.
According to the Finance Minister, the focus of the next phase of reforms will be on providing relief to households, simplifying compliance for businesses, and enabling taxpayers to fulfill their obligations with less time and cost.
She stated that the value of declared taxable supplies between October 2025 and July 2026 rose by 25.8% compared to the same period a year earlier. During April–September 2026, gross GST collections increased by 11.6% to ₹12.46 lakh crore.
GST collections recorded double-digit year-on-year growth for four consecutive months from June to September 2026. Overall collections during this four-month period increased by around 15%. In the first half of the current financial year, net GST collections after refunds grew by 10.4%. During the same period, consumer sales, or B2C supplies, increased by 26.7%.
By the end of August 2026, the number of GST registrations reached approximately 1.71 crore, marking an increase of nearly 15% compared to the previous year. Refunds amounting to around ₹1.80 lakh crore were issued during the April-September period. Sitharaman stated that greater certainty in the refund process is crucial for businesses.
States saw their total SGST revenue, including their share from IGST settlements, grow by around 16% between April and September. Sitharaman said the next round of GST process changes has been worked out in consultation with states and will be placed before the GST Council. The focus will be on making GST compliance simpler and reducing the time and cost involved for businesses.
Sitharaman said an easier and more predictable GST system could help businesses expand with greater confidence. She added that the changes could particularly benefit small businesses in Tier-2 and Tier-3 cities, helping them grow and contribute more to the economy.
