GST reforms in India: What’s coming next?
A recent upbeat survey among industry stakeholders and tax professionals signals strong optimism for GST reforms in India. From simplified compliance to rationalised rates, expectations are high that the government will introduce next-gen changes to make the GST regime more efficient and business-friendly.
Let’s decode what could be on the horizon — and how you can prepare for it.
What the latest GST survey reveals
A nationwide survey conducted by leading policy institutions and trade bodies, including feedback from over 5,000 businesses and tax professionals, found:
- 83% respondents want a simpler return filing system
- 76% support single GST registration for pan-India operations
- 69% expect rationalisation of GST rates (especially 12% & 18%)
- 52% seek faster refunds for exporters and MSMEs
- 46% call for decriminalisation of minor GST offences
These insights are being studied closely by the GST Council ahead of its next meeting in July 2025.
Possible GST reforms in India (2025 onwards)
Based on expert views and official sources, here’s what may unfold:
1. Return simplification
- Merge GSTR-1 and GSTR-3B into a single monthly return
- Auto-population of ITC based on supplier uploads
- Quarterly returns for small taxpayers may become standard
Legal Reference: Discussions already underway in the Council per press release from 52nd GST Council meeting.
2. Rationalised tax slabs
- Merge 12% and 18% slabs to reduce classification disputes
- Bring petroleum and alcohol under GST gradually
- Reduce GST on daily-use essentials and compliance services
Expert Tip: Businesses dealing in multi-rate goods should prepare for HSN restructuring and pricing adjustments.
3. Pan-India GST registration
- One nation, one GST registration proposal under active review
- Especially helpful for e-commerce sellers and logistics players
- Likely to reduce compliance burden and operational costs
Legal Angle: Could require amendments to Section 25 of the CGST Act, 2017.
4. Refund process overhaul
- End-to-end automation of refund claims
- Refunds to be processed within 7 days for verified claims
- Exporters to receive pre-filled refund applications via ICEGATE–GSTN integration
Source: CBIC Budget 2025 compliance roadmap highlights refund process revamp as a key deliverable.
5. Decriminalisation and ease of doing business
- Threshold for arrest under Section 132 of CGST Act to be raised
- Compounding amounts to be reduced
- Voluntary disclosures without penalty under consideration
Case Update: Gujarat HC (2024) observed that arrest for minor procedural lapses creates fear and hampers genuine business.
What taxpayers should do now
To stay ahead of the curve:
- Review your GST return processes and ITC reconciliation
- Monitor Council updates via gstcouncil.gov.in
- Consider GST automation tools for better compliance
- Consult with experts to restructure invoicing, if rate mergers happen
Summary (
GST reforms in India may include simpler returns, rate rationalisation, pan-India registration, and faster refunds. Learn what’s next and how to prepare.
FAQ: GST Reforms in India
Q1: Will GST rates be reduced in 2025?
Possibly. The Council is considering merging the 12% and 18% slabs to reduce complexity.
Q2: Is there a plan for single GST registration?
Yes. Discussions are ongoing to allow pan-India registration to reduce compliance hassles for multi-state businesses.
Q3: What about refunds for MSMEs?
Faster and automated refunds are expected, especially for exporters and MSME sectors.
Final Thoughts
India’s GST journey is evolving — and so must your compliance strategy. Whether you’re a business owner, tax consultant, or a CA firm, staying updated on these expected reforms will help you transition smoothly when changes kick in.