Next-Gen Goods and Services Tax drives growth and tax collections across India

India's gross Goods and Services Tax collections reached 1.24 lakh crore rupees during the April to September 2026 period, marking an 11.6 percent increase over the previous year. Union Minister of Finance and Corporate Affairs Nirmala Sitharaman stated that Next-Gen GST was built to lower and simplify tax rates while making compliance easier for businesses.

Growth and Collections

Taxable supplies grew by 25.8 percent between October 2025 and July 2026 compared to the previous year. Every month from June through September recorded double-digit annual growth with collections accelerating by nearly 15 percent. Net collections after refunds grew by 10.4 percent over the half-year. Reported sales to consumers rose by 26.7 percent in the post-reform comparison, while State-level SGST receipts grew by about 16 percent during the April to September period.

Participation and Administration

GST registrations across Central and State jurisdictions reached approximately 1.71 crore at the end of August, showing a nearly 15 percent increase from the previous year. Timely GSTR-3B return filings increased by 12.6 percent for the April to July 2026 tax periods. Authorities refunded approximately 1.80 lakh crore rupees during the April to September window. New proposals before the GST Council address registration, returns, refunds, disputes, and input tax credit flows.

Context

Indirect taxes like the Goods and Services Tax apply to the supply of goods and services across the country and form a major source of revenue for both central and state governments in India. Regular changes to tax structures and administrative processes aim to balance revenue generation for public infrastructure with ease of doing business for enterprises.