From complexity to clarity: GST Council ushers in a new era of tax reforms

The government's announcement of GST reforms at the 56th Council meeting — anchored around rate rationalisation, resolution of classification disputes, correction of inverted duty structures, structural changes, and trade facilitation — marks a bold reset of India's indirect tax regime.

- SAMEER GUPTA AND UDAY PIMPRIMAR

By phasing out anomalies and aligning rates with economic priorities, the Council has revived the original promise of GST with renewed clarity and conviction. This next generation of reforms is poised to create a simpler, more transparent, and growth-oriented tax system.

A defining feature of these reforms is the consensus-building that made them possible. Indirect taxation has always been a delicate matter of federal balance, but the Centre and states have walked in lockstep, demonstrating the spirit of cooperative federalism. Achieving unanimity on such sweeping changes speaks volumes about the maturity of India's fiscal dialogue. Simplification, dispute reduction, and a broader tax base are central to this journey.