CURRENT ECONOMY AND RECENT DEVELOPMENTS IN GST

GDP growth for India is FY 2027 has now been upgraded by major global agencies such as ADB (7%), OECD (7.1) S & P Global (7.0%) and Fitch Ratings (6.9). These were earlier in the range of 6.3% to 6.6%. The reasons include strong consumption demand, investment and export performance, despite supply disruptions and high commodity prices owing to West Asia concerns. It is also expected that growth may ease in the second half of current fiscal.

Ministry of Finance in its Monthly Economic Revenue has projected a GDP growth of 7.3% in September, 2026 quarter which is much higher than that of RBI (6.4%). It states that growth momentum has extended into Q2 of FY 2027, though at a more measured pace. However, it warns that India cannot afford to rest on its post Covid growth laurels due to geo- political and geo-economic uncertainty that is plaguing the world currently. India cannot afford to take its growth performance for granted amid worsening geo-political polarization and needs to take sustained, high quality and reasonably swift decisions to reassure investors, while making the economy more 'competition friendly' rather than merely 'business friendly'.

Services sector (10 sectors) has recorded a robust growth in double digits in first four month of current fiscal. These include inter alia, accommodation, food, support services, retail trade, banking and telecom.

The next GST Council meeting is scheduled to be held at New Delhi on 7th October, 2026, after a gap of 13 months. This meeting is crucial as last year too, it made substantial tax rate reforms which were implemented from auspicious Navratra week. This year too, Navratras start from 11th October, 2026 which also marks the beginning of festive season and hence more demand, more consumption and more tax revenues. It is expected that the meeting may also take up the easing out of blocked Input Tax Credit (ITC) which is one of the major pain points for businesses. As per media reports, there could be easing out of ITC blockage on insurance, outdoor catering, fee samples, goods destroyed in fire or written off, besides leasing or renting or hiring of motor vehicles. The changes to section 17(5) may have to be made to effect such changes, if so decided. It may also consider approving freight movement through metro trains network as a mode of transport. It may also take a call on protection to genuine buyers from defaults made by suppliers.

The Tribunals Reforms Act, 2026 has been enforced w.e.f. 25.08.2026. The coverage extends to 16 Tribunals in the country including CESTAT, ITAT etc.

In one of the interesting revelations, it has been reported that nearly half of the Government advertisement costs (Rs. 27 crores) was spent on GST Bachat Utsav during 2023-24 to 2025-26. This was a nationwide campaign to create GST rate cut awareness from September, 2025 onwards.

Two SOPs have been issued for GSTAT appeals-one procedure for respondent to file a reply to an appeal filed against then and two, process for filing a transfer appeal in cases where multiple appeals involving identical question of law have been filed across different GSTAT benches in the country. Where taxpayers have multiple GSTNs linked to same PAN of company and have filed multiple appeals in different benches, taxpayers can consolidate such matters through a single transfer appeal. Maharashtra CGST has mandated Rs. 500 stamp duty on letter of authority for representation by CA/ CWA.GSTP or employee/relative. Government has also notified rules for GSTAT Group 'A' & 'B' Posts Recruitment Rules, 2026.

GST collection for September, 2026 has been recorded past Rs. 2 lakh crore, for third month in a row. The gross tax collection stood at Rs. 2,03,521/- crore showing a growth of 14.7% on YoY basis. Gross GST collection from domestic business grew of 10.1% to Rs. 1.38 lakh crore while import tax revenue grew by 26% to Rs. 65,525/- crore. Net GST collection rose by 18.1% to over 1.76 lakh crore (Rs. 1,49,517 crore in September, 2025). With onset of festive season, one can expect business to grow in Q3 now. October, 2026 figures can be expected to be higher when November, 2026 collections are measured.

Rs. 500 Stamp Duty on letter of authority - Maharashtra State

• The Maharashtra State Tax Department has clarified that a Letter of Authority submitted by an authorised representative under Section 116 of the CGST Act, 2017 is required to be properly signed and stamped.
• A stamp duty of Rs. 500/- is applicable on the Letter of Authority issued in favour of a CA / Cost Accountant / GST Practitioner / Relative / Employee of the taxpayer, as the definition of "Power of Attorney" under Section 2(r) of the Maharashtra Stamp Act includes a Letter of Authority.
• The Rs. 500 stamp duty requirement does not apply to a Lawyer/Advocate who is a member of the Bar Council. In such cases, the applicable court-fee stamp under the Maharashtra Court Fees Act may be affixed.
• The proper officer is required to verify the Letter of Authority for compliance with Section 116 of the CGST Act and the applicable stamping requirements.

[Source: Letter No. NCST/Nodal-2/INSTRUCTIONS/2026-27/B-656 dated 17.08.2026

issued by Joint Commissioner of State Tax, Nodal-2, Pune]

Rajasthan Commercial Taxes Department -Reorganization of Field Formations

• The Commercial Taxes Department, Government of Rajasthan has issued an order regarding the commencement of regular functioning of the reorganized field formations.
• Pursuant to the reorganization of departmental offices and notification of their respective territorial jurisdictions, the mapping of the newly created Zones/Circles/Wards and corresponding officers has been completed on the Departmental system.
• Accordingly, all concerned officers have been directed to commence functioning under their newly assigned jurisdictions with immediate effect and undertake all statutory, administrative and other duties assigned to their respective offices.
• The Additional Commissioners (Administration/BAW/EW/Appeals) have been directed to ensure a smooth transition and proper disposal of work without disruption.

(Source: Order No. F.17(228)ACCT/GST /2023 /01872, dated 08.09.2026

issued by Chief Commissioner State Tax, Rajasthan)

GSTN introduces "Multistate Registration" facility for GST Registration

• GSTN has introduced a new "Multistate Registration" functionality on the GST Common Portal, enabling taxpayers to apply for GST registration in multiple States/UTs simultaneously under the same PAN. Currently, the facility is available only for Normal Taxpayers.

• The following steps have to be taken for this purpose:

• A new "Multistate Registration" tab is available on the GST Common Portal for selecting multiple States/UTs.
• Upon selection, a Master TRN is generated.
• The applicant can submit Common Registration Information (CRI), including business details, promoter/partner details, authorised signatory, authorised representative and goods/services details.
• The Master TRN must be submitted within 15 days.
• After submission of CRI, individual TRNs are generated for each selected State/UT.
• Common information is automatically populated in the respective applications and remains editable.
• Applicants are required to provide State-specific details such as Principal Place of Business (PPoB), Additional Place of Business (APoB), State-specific information and Aadhaar authentication.

• The facility eliminates the need to repeatedly enter common registration information for each State/UT and is intended to simplify the GST registration process and reduce repetitive data entry.

(Source: GSTN Advisory dated 01.10.2026)

GST collection in September, 2026

• GST collection for the month of September, 2026 reflect total collection of over Rs. 2 lakh crore for 3rd month in a row.
• Total gross GST revenue is Rs. 2,03,521/- crore reflecting a growth of 14.7% over September, 2025.
• Of total revenue, gross domestic revenue is Rs. 1,37,996/- crore (10.1% up) and gross import revenue is Rs. 65,525 crore (25.9% upon YoY basis)
• However, total refunds accounted for Rs. 27001/- crore (-3%) out of which domestic refunds are Rs. 13,504/- crore (-13.5%) and IGST refunds Rs. 13,497/- crore (10.2% up).
• Net GST revenue stood at Rs. 1,76,520/- crore with 18.1% growth over Rs. 1,49,517/- crore in September, 2025.
• State wise growth of GST revenue excluding GST on input of goods show that states like Manipur, Arunachal Pradesh, Assam have shown handsome growth with few states like Punjab, UP, Delhi and Gujarat also showing growth in double digits. Few States have however, shown negative growth. These include Himachal Pradesh, Uttarakhand, Sikkim, Meghalaya, Puducheery etc.