Whalesbook
GST Set for Fine-Tuning in 2026
India's Goods and Services Tax (GST) regime is poised for a phase of refinement in 2026, with experts forecasting a move away from drastic structural changes towards selective adjustments. The emphasis will be on fine-tuning existing policies to sustain consumption and business confidence.
Second Reform Wave Discussed
Policy discussions are centering on a potential second wave of GST and Customs restructuring. This would aim to tackle persistent issues like inverted duty structures and streamline compliance burdens for Micro, Small, and Medium Enterprises (MSMEs). The reforms are intended to build on 2025's rate rationalization within a more stable, predictable framework.
Stability and Predictability Key
Experts like Abhishek A Rastogi, Founder of Rastogi Chambers, suggest that a leaner, predictable GST architecture is crucial. This approach, he argues, will not only protect government revenues but also support domestic consumption, investment, and the formalization of businesses. The 2025 rate rationalization is seen as a catalyst that has reduced frictions and reset market behavior.
Technology to Drive Compliance
Rajat Mohan, Senior Partner at AMRG & Associates, expects revenue performance in 2026 to be driven by improved compliance, deeper formalization, and technology-led enforcement. This includes analytics-based matching of returns, e-invoicing, and customs data. Enforcement is anticipated to become sharper, targeting misclassifications and incorrect tax applications.
Industry Perspective
While GST rationalization has influenced pricing, the smartphone sector's consumption is subject to broader macroeconomic factors, according to Madhav Sheth, CEO at Ai+ Smartphone. He noted that any further GST restructuring must be approached carefully to avoid disruptions, with a focus on enhancing value propositions and innovation for consumer demand recovery.