Experts Urge GST Reforms Despite Strong Revenue Collections in May 2026
GST reforms needed despite strong May 2026 collections, say experts
Asianet Newsable
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Tax experts advocate for significant reforms in India's Goods and Services Tax (GST) framework, despite strong collections of ₹1,94,184 crore in May 2026. Proposed changes include easing input tax refunds, addressing inverted duty structures, and including petroleum products under GST to enhance liquidity and compliance for businesses.
- 01GST collections in May 2026 reached ₹1,94,184 crore, a 3.2% increase year-on-year.
- 02Cumulative collections for the financial year have risen by 6.2% to ₹4,36,887 crore.
- 03Experts recommend reforms to improve liquidity, such as relaxing input tax refund provisions.
- 04The GST Council is urged to address inverted duty structures and simplify refund mechanisms.
- 05Experts believe that including petroleum products under GST could significantly rationalize tax incidence.
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Tax experts are calling for comprehensive reforms in India's Goods and Services Tax (GST) system despite strong revenue collections in May 2026, which totaled ₹1,94,184 crore—a 3.2% year-on-year increase. Experts like Pratik Jain from Price Waterhouse & Co LLP emphasize the need to ease input tax refund provisions to support businesses facing rising input costs due to supply chain disruptions. Additionally, Vivek Jalan from Tax Connect Advisory Services LLP highlights the necessity to address inverted duty structures and advocates for bringing petroleum products under GST, which would reduce tax cascading effects. Manoj Mishra from Grant Thornton Bharat noted that the GST regime is demonstrating maturity, as collections remain robust without extraordinary revenue support. While the current figures reflect a resilient economy, experts stress that policy reforms aimed at improving refunds and reducing tax distortions are essential for sustaining growth and enhancing the tax ecosystem.
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The proposed GST reforms could improve liquidity for businesses and enhance the overall tax ecosystem in India.
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