GST 2026: Simpler compliance, tech-led enforcement reflect growing trust between government and industry, says Deloitte’s MS Mani
Deloitte India’s MS Mani said the latest GST reforms reflect growing trust between government and industry, with technology enabling simpler compliance and more targeted enforcement. He said easier registration, annual returns with quarterly payments, return corrections and removal of arrest provisions could reduce compliance fears and bring more businesses onto the GST platform.
The recent GST Council meeting highlighted the growing trust between the government and industry, with a focus on making compliance simpler through technology-led enforcement. Following the successful rate rationalisation in September 2025, the latest proposals aim to further simplify processes and reduce friction for businesses, expecting stronger growth as a result.
The council's announcements build upon the momentum from the rate rationalisation by removing compliance burdens and streamlining procedures, all while harnessing technology to support businesses. This reflects the council's responsiveness in addressing global economic challenges.
A key aspect of the proposed changes is the removal of arrest provisions from the GST legislation, made possible by the system's ability to better identify tax evaders and false Input Tax Credits (ITC). Similarly, a committee will be established to explore ways to protect ITC for genuine buyers and recover it from sellers who have not paid the correct tax, facilitated by the existing invoice matching trail.
These measures are expected to alleviate significant pain points for businesses. Additionally, the simplification of registration requirements, the introduction of an annual return and quarterly payment system for certain businesses, and the ease of correcting returns will encourage more entities to join the GST platform. This is because businesses will no longer face the fear of a compliance-heavy tax system, as they recognize that growth in tax collections relies on business growth, which in turn depends on simpler tax processes and policies that acknowledge business practices and working capital challenges.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
