GST 2026: Simpler compliance, tech-led enforcement reflect growing trust between government and industry, says Deloitte’s MS Mani

A key aspect underlining the GST Council meeting is the growing mutual trust between government and industry. Following the positive response to the September 2025 rate rationalisation exercise which drove steady growth in tax collections, the latest announcements build on that momentum by removing compliance friction and simplifying processes, expecting businesses to respond with stronger growth.

The changes proposed highlight how technology can be harnessed to support business, proving the council's responsiveness amid global economic headwinds. The entire GST system is based on data provided by taxpayers, and it is befitting that the data collected is converted to information that is used to make compliance easier for all businesses.

The removal of arrest provisions from the GST legislation has been made possible only because it is now easier to identify tax evaders and fake ITC through the system. Similarly, the decision to constitute a committee of officers to examine how to protect ITC for genuine buyers and recover it from sellers who have not paid the tax, is possible due to the invoice matching trail.


Both these measures are expected to remove a significant pain point. The simplification of registration provisions, the proposed system of annual return and quarterly payments for certain categories of business and the ease of correcting returns will bring more businesses onto the GST platform as they no longer fear a compliance-heavy business tax.

The changes reflect the growing trust between tax administration and business as both realise that growth in tax collections is dependent on growth in business which in turn is dependent on simpler tax processes and policies that recognise business practices and appreciate working capital challenges.