GST 2026: India Shifts to Fine-Tuning, Targeted Reforms for Growth

• India's GST regime is transitioning from "fire-fighting" to "fine-tuning" and "selective restructuring" by 2026, emphasizing stability and predictability.
• Discussions are underway for a "second wave of GST and Customs restructuring" to address inverted duty structures, simplify MSME compliance, and merge overlapping slabs.
• Future revenue growth is expected from improved compliance, formalisation, and technology-driven enforcement, rather than frequent rate changes.
• The 2025 GST rate rationalisation successfully recalibrated pricing, improved Input Tax Credit flow, and encouraged formalisation.
• Industry experts highlight that while GST stability is crucial, broader macroeconomic factors significantly influence consumer demand, as seen in the smartphone sector.

Why It Matters: GST's future focuses on stable, targeted reforms and tech-driven compliance to boost growth, moving past major overhauls.