Next phase of GST reforms to support PM Modi's ‘Viksit Bharat’ vision: FM Sitharaman

Finance Minister Nirmala Sitharaman announced on Monday that the upcoming phase of Goods and Services Tax (GST) reforms will aim to simplify compliance, advancing Prime Minister Narendra Modi's vision of a 'Viksit Bharat' or Developed India. She stated that the reforms are expected to support economic growth while providing relief to taxpayers.

In a detailed post on LinkedIn, Sitharaman indicated that the Next-Gen GST reforms are tailored to enhance taxpayer experience. The first part of these reforms began with rate changes introduced on September 22, 2025, and now the Government is working on process-related changes that will soon be presented to the GST Council.

"The next phase of process reforms will come before the GST Council shortly," she emphasized, signaling the government's commitment to making the tax system more user-friendly. The current reforms aim to relieve households, deliver greater certainty to businesses, and simplify the compliance process for taxpayers.

The Finance Minister highlighted significant growth in the economy, with the value of reported taxable supplies increasing by 25.8 percent between October 2025 and July 2026 compared to the previous year. This growth reflects a robust economic environment bolstered by the ongoing GST reforms.

Furthermore, Sitharaman reported a notable rise in Gross GST collections, which surged by 11.6 percent to reach Rs 12.46 lakh crore during the first half of the financial year (April-September 2026). She noted that GST collections experienced double-digit annual growth each month from June to September, amounting to nearly 15 percent over this four-month period.

Net GST collections, which account for refunds, also rose by 10.4 percent during the first half of the financial year, illustrating a favorable trend in tax revenue. The reported consumer sales or B2C supplies increased by 26.7 percent following the implementation of recent reforms, demonstrating strong market activity.

Sitharaman also mentioned that approximately Rs 1.80 lakh crore was refunded during the April to September period. Recognizing the importance of predictable refund processes, she underscored this as crucial for business operations.

Moreover, the total State Goods and Services Tax (SGST) receipts, including inter-state GST (IGST) settlements, increased by about 16 percent during this timeframe. Such a rise in state revenues reflects the continued positive impact of the GST reforms on sub-national economies.

The proposals scheduled for consideration by the GST Council on October 7 have been crafted through consultations with state governments and are intended to lessen the time and cost associated with compliance. Sitharaman believes that a simplified and consistent GST framework will particularly benefit small businesses in Tier-2 and Tier-3 cities as they expand and contribute to national growth.

Source

Original IANS report

Edited with AI assistance.

Featured image: AI-generated representative image.