Finance Minister Nirmala Sitharaman on Monday, 5 October 2026 said the next phase of Goods and Services Tax (GST) reforms will prioritise simplifying compliance, directly advancing Prime Minister Narendra Modi's vision of a 'Viksit Bharat' — a developed India. Sharing an article on LinkedIn, Sitharaman described the upcoming process-related changes as part of a broader Next-Gen GST overhaul designed to give households relief, offer businesses greater certainty, and make it easier for taxpayers to meet their obligations.

What the Reforms Cover

According to Sitharaman, the reform process is unfolding in two distinct stages. The first phase — rate changes introduced on 22 September 2025 — is already in effect. The second phase, focused on process-related improvements, is now approaching the GST Council for consideration. Proposals for the 7 October Council meeting have been developed in consultation with states and are aimed squarely at reducing the time and cost of compliance.

'The next phase of process reforms will come before the GST Council shortly,' Sitharaman said.

GST Revenue Metrics Signal Strong Post-Reform Momentum

The minister cited a range of figures to underscore the reforms' early impact. Gross GST collections rose 11.6 per cent to ₹12.46 lakh crore during April–September 2026, with double-digit annual growth recorded every month from June through September. Collections during that four-month stretch rose nearly 15 per cent. Net GST collections — after refunds — grew 10.4 per cent in the first half of the financial year.

Notably, the value of reported taxable supplies grew 25.8 per cent between October 2025 and July 2026 compared to the same period a year earlier. Reported consumer sales (B2C supplies) surged 26.7 per cent in the post-reform period, while GST registrations stood at approximately 1.71 crore at the end of August 2026, up nearly 15 per cent year-on-year.

Refunds and State Revenues Also Strengthened

Sitharaman highlighted that around ₹1.80 lakh crore was refunded during April–September 2026, calling greater predictability in the refunds process critical for business planning. Aggregate SGST receipts of states — including their share of IGST settlements — grew approximately 16 per cent during the same period, a figure that underscores the federal dimension of the GST's improving health.

Who Stands to Benefit

The minister specifically called out small businesses in Tier-2 and Tier-3 cities as key beneficiaries of a simpler and more predictable GST architecture. This focus signals an intent to deepen the tax net beyond large urban enterprises and draw in a wider base of compliant filers. This comes amid broader Centre-level efforts to formalise India's economy, a process that GST has accelerated since its rollout in 2017.

What Comes Next

The GST Council is scheduled to meet on 7 October 2026 to consider the process reform proposals. Industry bodies and small business associations are expected to watch closely for measures that cut filing timelines and reduce notices. With nearly nine years since GST's launch, the reform conversation is increasingly shifting from rate rationalisation to administrative efficiency — a sign of the tax system's maturing trajectory.