{
  "id": 12036779,
  "title": "Next-Gen GST and India’s next phase of growth",
  "url": "https://urgent.news/2026/10/04/next-gen-gst-and-indias-next-phase-of-growth",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-04T18:47:22.000Z",
  "source": {
    "name": "The Hindu",
    "slug": "the-hindu",
    "url": "https://www.thehindu.com/business/Economy/next-gen-gst-and-indias-next-phase-of-growth/article71541678.ece"
  },
  "original_language": "en",
  "account": "India's vision for a Viksit Bharat hinges on an economy where businesses of all sizes can thrive, regardless of their location. The government's efforts over the past decade have created the conditions for this ambition to become a reality. The introduction of the Goods and Services Tax (GST) in 2017 established a nationwide framework for indirect taxation. Building on nine years of experience with GST, the Next-Gen GST aims to further streamline the tax system, reducing and rationalizing rates while simplifying compliance for taxpayers and States. Prime Minister Narendra Modi's vision for Next-Gen GST encompasses two key objectives: minimizing tax burden and making compliance more manageable. These reforms took effect on September 22, 2025, with further process improvements expected before the GST Council. The goal is to provide households with relief, offer businesses greater certainty, and create a system that allows taxpayers to fulfill their obligations without undue difficulty. States have been integral partners throughout this process, contributing their priorities and experiences to the GST Council and implementing the reforms. India's GST progress demonstrates the success of this shared national purpose, respecting each government's responsibilities. A 25.8% increase in the value of reported taxable supplies between October 2025 and July 2026, compared to the same period a year earlier, highlights the positive impact of these reforms. The lighter rate structure has accompanied a substantial expansion in reported economic activity, indicating a resilient tax system. Gross GST collections reached ₹12.46 lakh crore during April–September 2026, up 11.6% from the same period in the previous year, with double-digit growth in the last four months alone. This growth is evident across all sector groups and major States, indicating a nationwide expansion. Consumer relief has gone hand-in-hand with these economic gains, with reported sales to consumers (B2C) rising by 26.7% in the post-reform comparison. The benefits extend beyond households to businesses, suppliers, and producers, with small and medium enterprises particularly benefiting from a national market that opens opportunities for customers and employment. The common GST framework supports these connections, with registrations across Central and State jurisdictions growing by nearly 15% since August. Improved tax administration, including reliable service and clear guidance, is essential for maintaining businesses' confidence in complying with tax obligations. The share of tax liability discharged through input tax credits has also risen, demonstrating the effectiveness of the reform in supporting businesses' working capital needs. Refunds, totaling approximately ₹1.80 lakh crore during April–September 2026, further highlight the system's responsiveness to taxpayers' needs. Looking ahead, the GST Council's proposals aim to reduce compliance costs and streamline processes, ensuring that taxpayer experience continues to guide implementation.",
  "summary": "Next-Gen GST was conceived with two connected purposes: to reduce and rationalise rates, and to make compliance easier",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}