3 hrs ago
GST Taxable Supply Expands 25.8% as Effective Rates Fall
More economic activity is now being counted as taxable under GST.
The value of taxable supplies grew by 25.8%.
At the same time, the average effective tax rate went down.
The total gross tax liability still rose, but by less than the value of taxable supplies.
GST revenue is also reported to have grown.
The GST Council is making more registration and refund steps faster and more technology-based.
These changes aim to make it easier to follow the rules and help the system identify possible problems.
The Council kept the existing tax rate structure at its latest meeting.
The value of taxable supplies rose 25.8%, while the effective domestic tax rate fell from 14.55% to 13.13%.
Gross tax liability increased from ₹5.85 lakh crore to ₹6.64 lakh crore, a rise of 13.6%.
GST revenue is estimated to have grown 11% in FY27, and collections during June-August 2026 increased 14.7%.
About 61% of GST registrations are automated, with other applications handled by officers.
The GST Council approved quicker refund processing and other measures to simplify compliance and reduce friction for taxpayers.
- Who
- The GST Council and taxpayers covered by the GST system.
- What
- Taxable supplies expanded as the effective domestic tax rate fell, alongside measures to simplify GST compliance.
- Where
- India.
- When
- The article cites FY27 and GST collections during June-August 2026; the comparison period for the supply and tax-rate figures is not specified.
- Why
- The measures aim to broaden the tax base, improve compliance and make the GST system more efficient.
Key facts
- Taxable supplies
- Rose 25.8%.
- Effective domestic tax rate
- Fell from 14.55% to 13.13%.
- Gross tax liability
- Increased from ₹5.85 lakh crore to ₹6.64 lakh crore, up 13.6%.
- Estimated GST revenue growth
- 11% in FY27.
- GST collections
- Grew 14.7% during June-August 2026.
- Automated registrations
- Around 61% of GST registrations are automated.
- Refund processing
- Acknowledgement period is being reduced from 15 days to 10 days; 90% of refunds are to be sanctioned within three working days on a risk-based basis.
- Rate structure
- The GST Council retained the existing rate structure at its latest meeting.
Sources
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