India's next phase of Goods and Services Tax (GST) reforms must centre on simplicity, technology-driven compliance, and swift dispute resolution, according to a report released on Thursday, 22 October 2026. The report, jointly prepared by ASSOCHAM and Lakshmikumaran & Sridharan Attorneys (LKS), lays out a structured roadmap for what industry insiders are calling GST 2.0 — the second generation of reforms to the tax system that transformed India's indirect taxation landscape in 2017.

Key Recommendations from the Report

The ASSOCHAM-LKS report proposes a 24-month timeline for capital-goods refunds, a threshold of no tax notices below ₹10,000, and faster appellate mechanisms. It argues that the next stage of GST reform must simultaneously boost competitiveness for manufacturing and exports while reducing the compliance burden on businesses, particularly MSMEs and small traders.

The report also stressed the importance of digitisation and accessible information in helping businesses understand and comply with GST requirements — a persistent pain point since the tax's rollout.

What the Government Said

Balasubramanian K, Joint Secretary, Department of Revenue, Ministry of Finance, emphasised the need for swift and effective implementation of GST 2.0 recommendations. He called for technology-driven systems capable of detecting anomalies at an early stage, easing the burden on compliant taxpayers. 'The objective is that we will have a system-based, technology-based system which would detect anomalies early enough so that we can have the ease shown to the genuine taxpayer,' he said.

Spotlight on the GST Appellate Tribunal

Dr. Justice (Retd) Sanjaya Kumar Mishra, President, Principal Bench, New Delhi of the Goods & Services Tax Appellate Tribunal (GSTAT), highlighted the tribunal's unique role in the dispute resolution framework. 'GSTAT is the first and the only tribunal today which caters to the needs of dispute resolution for both the Union government and the state governments,' he said. The tribunal's establishment has been seen as a long-overdue step in reducing litigation backlogs under GST.

Industry's Four-Pillar Vision

Anil K. Agarwal, Past President, ASSOCHAM, articulated the reform priorities clearly: 'As India advances towards Viksit Bharat, the next stage of GST reform must rest on four pillars: simplicity, technology that makes compliance easier, effective and speedy dispute resolution, and competitiveness for manufacturing and exports.'

A technical session during the event further examined the evolving GST landscape following the GST Council's latest recommendations. Discussions covered key compliance challenges faced by MSMEs and traders, perspectives on penalty proceedings under Section 122, and an analysis of recent GST judgments — reflecting the breadth of unresolved issues still facing the tax system nearly a decade after its launch.

Why GST Reform Matters Now

India's GST framework, now in its ninth year, has significantly broadened the tax base and integrated the country's fragmented indirect tax structure. However, compliance complexity, frequent rate changes, and a slow dispute resolution pipeline have drawn persistent criticism from businesses. This comes amid heightened government focus on easing the cost of doing business as India targets higher manufacturing output and export competitiveness. The report's release signals that the conversation around structural GST reform is gaining renewed urgency.

With GSTAT now operational and the GST Council actively deliberating on rate rationalisation, the next twelve to twenty-four months could prove pivotal for the tax system's long-term architecture.