GST reforms: A roadmap to rationalisation, revenue, and regime evolution

From rate rationalisation to cess management and expanding the GST base, India's evolving tax regime faces critical design and compliance challenges requiring balanced reforms

In its evolution, the goods and services tax (GST) regime is reaching a point where discussions on design changes need to be explored. The back-to-back loans taken by the Centre to meet compensation commitments following the Covid-19 pandemic are expected to be repaid by November 2025. The legal limit for the levy of the compensation cess extends till March 2026. This is a critical point in the evolution of the tax, where a significant comprehensive reform can be discussed. Beyond the question of whether the cess should be extended in its current or a different form, there are a few