GST winners 2026: No rate cuts, but small businesses, exporters and taxpayers have plenty to gain. Here's how

The GST Council held its 57th meeting, moving away from rate cuts to overhaul the indirect tax system for businesses and taxpayers. The reforms include faster and more automated registration, refunds, input tax credit (ITC), and enforcement procedures.

Low-risk GST registration applicants will now receive their registration within three working days, with the application form showing only relevant fields and explaining the purpose of each document. Moreover, changes to registration amendments will be accepted automatically, covering details like trade name, director or partner, and additional place of business.

Refunds will move faster, with 90% of claims to be released automatically. The deadline for acknowledging a refund claim will decrease from 15 days to 10 days, and the system will sanction 90% of the claim based on risk assessment within three working days of acknowledgement.

The GST base has expanded, with taxable supplies rising 25.8% to Rs 50.58 lakh crore per month and consumer supplies increasing 26.7% to Rs 7.58 lakh crore. Gross tax liability has grown 13.6% to Rs 6.64 lakh crore per month, while the effective tax rate on domestic supplies has fallen to 13.13% from 14.55%.

GST enforcement is shifting from deterrence to detection, with the power of arrest removed. The prosecution threshold will rise to Rs 5 crore, and the minimum punishment will be removed, leaving judicial discretion for fines, imprisonment, or both.