Nirmala Sitharaman
India’s ambition to become a Viksit Bharat requires an economy in which enterprises of every size can grow, wherever they begin. Over the past 12 years, our government has worked to create those conditions. The GST’s introduction in 2017 established a common national framework for indirect taxation. Next-Gen GST carries that effort forward, drawing on nine years of implementation and the experience of taxpayers and states.
Under Prime Minister Narendra Modi’s vision, Next-Gen GST was conceived to reduce and rationalise rates and to make compliance easier. The rate changes took effect on September 22, 2025. The next phase of process reforms will come before the GST Council shortly. These efforts seek to give households relief, businesses greater certainty and taxpayers a system in which they can fulfil their obligations without difficulty.
The states have been partners throughout, bringing their experience to the Council and undertaking implementation. I thank them for that commitment. GST’s progress rests on this willingness to pursue a national purpose while respecting each government’s responsibilities.
Between October 2025 and July 2026, the value of reported taxable supplies grew by 25.8% over the corresponding period a year earlier. A lighter rate structure has been accompanied by an expansion in reported economic activity.
Gross GST collections reached Rs 12.46 lakh crore during April-September 2026, up 11.6% over the corresponding period last year. Every month from June through September recorded double-digit annual growth; together, collections for these four months accelerated by nearly 15%. Net collections, after refunds, also grew by 10.4% over the half-year.
Reported taxable supplies grew across all 11 sector groups and all major states. Growth across sectors and regions creates opportunities for more businesses to participate in expanding markets and for communities to benefit from demand, investment and employment.
Reported sales to consumers (B2C) rose by 26.7% in the post-reform comparison. When tax relief is reflected in prices, families have more room to meet other needs or save. Consumer relief and enterprise growth are closely connected: household purchasing power sustains demand for the goods and services that businesses provide.
For small and medium enterprises, a national market is valuable when it opens a route to customers beyond their immediate surroundings. Businesses in Tier-2 and Tier-3 towns should be able to build those relationships while continuing to invest and employ people. GST’s common framework supports these connections; simpler administration must make them easier to sustain.
The GST registrations across central and state jurisdictions stood at approximately 1.71 crore at the end of August, up nearly 15% from a year ago. For the April-July 2026 tax periods, GSTR-3B returns filed by their due dates were 12.6% higher than for the same periods last year. These improvements place a corresponding responsibility on the administration: regular compliance must be supported by reliable service, clear guidance and timely resolution of difficulties.
The functioning of input tax credit is another important part of this experience. The post-reform figures show that the share of tax liability discharged through credits rose, while accumulated credit declined relative to taxable supplies. For smaller firms, working capital determines how readily they can purchase inputs and fulfil orders. Approximately Rs 1.80 lakh crore was refunded during April-September. Greater predictability would help enterprises plan purchases and production with more confidence.
The states also have a stronger revenue position. Their aggregate SGST receipts, including their share of IGST settlements, grew by about 16% during April-September this year. These resources support investment in infrastructure and public services. Household relief supports demand, enterprise strengthens economic activity, and public revenues help sustain development.
The proposals before the Council on October 7 have been developed through sustained work with the states. They address registration, returns, refunds, disputes and improved flow of input tax credit, with the aim of reducing the time and cost of compliance.
The GST’s growing maturity gives us a stronger foundation for the next stage of reform. The same commitment to clarity, certainty and respect for the taxpayer guides our work on direct taxes.
(The author is Union Minister of Finance and Corporate Affairs.)
