Upcoming GST Reforms Aimed at Simplifying Compliance, Says Finance Minister

Finance Minister Nirmala Sitharaman has revealed plans for the next phase of Goods and Services Tax (GST) reforms, focusing on simplifying compliance to support economic growth. The upcoming changes aim to provide relief to taxpayers and enhance certainty for businesses. With significant increases in GST collections and taxable supplies reported, these reforms are expected to benefit small enterprises, particularly in Tier-2 and Tier-3 cities. The proposals, developed in consultation with states, will be presented to the GST Council soon, aiming to reduce compliance costs and time.

By Narendra Chaudhary Oct 5, 2026, 13:51 IST

Focus on Simplifying GST Compliance

File image of FM Nirmala Sitharaman(Photo: IANS)

New Delhi, Oct 5: Finance Minister Nirmala Sitharaman announced on Monday that the forthcoming phase of Goods and Services Tax (GST) reforms will prioritize simplifying compliance to support Prime Minister Narendra Modi’s vision of a 'Viksit Bharat'.

In a LinkedIn post, FM Sitharaman emphasized that the Next-Gen GST reforms are designed to ease the burden on taxpayers while simultaneously boosting economic growth.

She noted that the rate adjustments made on September 22, 2025, marked the initial stage of these reforms, with further process-related changes expected to be presented to the GST Council soon.

"The next phase of process reforms will come before the GST Council shortly," FM Sitharaman stated.

These reforms aim to provide relief to households, enhance certainty for businesses, and simplify the tax obligations for taxpayers.

The minister also pointed out that the value of reported taxable supplies surged by 25.8 percent from October 2025 to July 2026 compared to the previous year.

Additionally, Gross GST collections increased by 11.6 percent, reaching Rs 12.46 lakh crore during the April-September 2026 period.

GST collections experienced double-digit annual growth every month from June to September, with a nearly 15 percent rise in collections over these four months, according to her report.

Furthermore, Net GST collections (after refunds) rose by 10.4 percent in the first half of the financial year, she added.

Reported consumer sales or B2C supplies saw a 26.7 percent increase in the post-reform period, while GST registrations reached approximately 1.71 crore by the end of August, marking a nearly 15 percent rise from the previous year.

Sitharaman mentioned that around Rs 1.80 lakh crore was refunded during the April-September period, emphasizing the importance of predictability in refunds for businesses.

She also highlighted that the aggregate SGST receipts of states, including their share of IGST settlements, grew by about 16 percent during April-September.

The proposals to be discussed by the GST Council on October 7 have been developed in collaboration with states and are intended to minimize compliance time and costs.

A more straightforward and predictable GST framework is expected to assist enterprises, particularly small businesses in Tier-2 and Tier-3 cities, in expanding and contributing to India's economic growth.