GST at nine: retail braces for next-wave reforms on ITC, inverted duty and e-commerce registration
As GST enters its tenth year, industry expects reforms targeting input tax credit clarity, inverted-duty fixes for FMCG, pharma and EVs, simplified registration for e-commerce suppliers, and an operational Appellate Tribunal—directly reshaping retail compliance and pricing. June 2026 net GST rose 11.2% YoY to Rs 1.62 lakh crore.
What happened
GST Council · On GST's ninth anniversary, industry anticipates next-wave reforms including ITC clarity, inverted-duty fixes for FMCG/pharma/EVs, simplified
Key facts
- 1.65 crore registered taxpayers
- June 2026 net GST up 11.2% YoY to Rs 1.62 lakh crore
- April 2026 record Rs 2.42 lakh crore
- September 2025 rate rationalisation
Why this matters
An operational Appellate Tribunal and inverted-duty fixes reduce tax-dispute overhang and working-capital drag, potentially de-risking valuations and M&A diligence across FMCG, pharma, and EV-adjacent retail targets.
What to watch
- GST Council meeting agenda and notifications on inverted-duty and ITC
- GSTAT bench operationalization and first hearing dates
- CBIC circular on e-commerce supplier registration thresholds
- Monthly net GST collection trend (sustained double-digit YoY vs deceleration)
- State finance ministers' stance on revenue-neutral rate adjustments
- Model working-capital release scenarios from faster ITC refunds and inverted-duty correction across FMCG/pharma/EV SKUs
- Audit classification and ITC exposure ahead of GSTAT to prepare dispute filings
- Marketplaces: prepare onboarding and TCS workflow changes for eased small-seller registration
- Reprice affected categories once duty structures clarify; lock pass-through vs margin capture stance
- Engage industry bodies to shape ITC-eligibility definitions during Council consultation