Next-Gen GST [Prelims Bits]

06 Oct 2026

Tags: Prelims   Current events of national and international importance

Source: The Hindu

Context: Next-Gen GST reforms seek to rationalise GST rates and simplify compliance, building on GST’s implementation since 2017.

• Rate changes came into effect on 22 September 2025; further process reforms are to be considered by the GST Council.
• GST: Destination-based, dual indirect tax introduced in India in 2017.
• GST Council:
  • Constitutional body under Article 279A.
  • Chaired by the Union Finance Minister.
  • Includes Union Minister of State for Finance and State Finance/Taxation Ministers.
  • Recommends GST rates, exemptions and other major GST-related matters.
• GST registrations: ~1.71 crore as of August 2026, ~15% higher year-on-year.
• GST collections: Gross collections of ₹12.46 lakh crore during April–September 2026; 11.6% YoY growth.
• Taxable supplies: Grew 25.8% between October 2025–July 2026 compared with the corresponding previous period.
• B2C sales: Increased 26.7% in the post-reform comparison.
• GSTR-3B: Returns filed by due dates increased 12.6% for April–July 2026 tax periods.
• Refunds: About ₹1.80 lakh crore refunded during April–September 2026.
• SGST receipts (including IGST settlements): States' aggregate receipts grew about 16% during April–September 2026.
• Input Tax Credit (ITC): Credit for eligible GST paid on inputs/input services, used to reduce output GST liability.
• IGST: Levied mainly on inter-State supplies and imports; subsequently apportioned between Centre and States according to the GST framework.
• SGST: State component of GST on intra-State supplies.
• CGST + SGST: Generally applicable to intra-State supplies.
• B2C: Business-to-Consumer transactions.
• GST Council decisions are recommendations, and GST is a concurrent Centre–State taxation framework, making cooperative federalism central to its functioning.