GST 2.0 Next Phase: Process Reforms Go to Council on Oct 7
FM Sitharaman says the next phase of GST reforms, focused on simpler compliance, goes to the GST Council on October 7. Gross GST collections rose 11.6% to ₹12.46 lakh crore in H1.
Key Highlights
- Next phase: Process reforms to simplify GST compliance will be taken up by the GST Council on October 7.
- Phase one recap: Rate changes under the "Next-Gen GST" reforms came into effect on September 22, 2025.
- Collections up: Gross GST collections rose 11.6% to ₹12.46 lakh crore in April–September 2026.
- Consumption boost: Reported consumer (B2C) sales grew 26.7% in the post-reform period.
- Refunds: Around ₹1.80 lakh crore was refunded during April–September.
The first phase of India's "Next-Gen GST" reforms changed what people pay. The second phase aims to change how businesses comply. Finance Minister Nirmala Sitharaman said on Monday that process-related reforms will soon come before the GST Council, with proposals to be considered on October 7.
Writing on LinkedIn, she said the reforms are designed to give households relief, offer businesses greater certainty, and make it easier for taxpayers to meet their obligations. The proposals have been developed in consultation with states and aim to cut the time and cost of compliance.
The Numbers Since the Rate Cuts
| Indicator | Figure |
|---|---|
| Gross GST collections (Apr–Sep 2026) | ₹12.46 lakh crore, up 11.6% |
| Net GST collections (H1) | Up 10.4% |
| Collections growth, June–September | Nearly 15% |
| Taxable supplies (Oct 2025–Jul 2026) | Up 25.8% |
| Consumer (B2C) supplies | Up 26.7% |
| GST registrations (end-August) | ~1.71 crore, up ~15% |
| Refunds (Apr–Sep) | ~₹1.80 lakh crore |
| States' SGST receipts (Apr–Sep) | Up ~16% |
Why It Matters: Lower Rates, Higher Collections
The data points to an interesting outcome. The rate changes of September 2025 lowered taxes on many goods, yet collections have kept growing at double digits since June. The strong rise in consumer sales suggests that lower rates boosted spending enough to lift overall revenue.
