Indirect Tax

India’s indirect tax reforms have come a long way. The next leap for them should be towards digitization to enhance tax clarity and ease of doing business. Budget 2026–27 should build on the success of GST 2.0 to create a modern customs and indirect taxation system.

From the government announcing an overhaul of India's indirect tax regime and launching a central scheme for recycling critical minerals to shrinking current account deficit (CAD) and the monsoon season's turbulent impact across the country, here is this week's news in numbers.

The GST rationalization has left a thorny issue unresolved: Several opposition-ruled states have warned of revenue losses from the tax cuts and renewed demands for compensation from the Centre.

While the GST Council has cut the tax on two-wheelers under 350cc from 28% to 18%, it has raised the effective tax on premium bikes (above 350cc) from 31% to 40%. Eicher and Bajaj account for about 90% of the premium market, but one is better placed to tackle the tax hike.

Industry stakeholders expect a boost to the entire electronics and appliances market this festive season, thanks to GST tax slab rationalization.

A structural revision of this indirect tax regime, as announced by the PM, would serve citizens well and also boost the economy. Cumulatively, GST 2.0 can help us achieve a stronger, fairer and more competitive India.

A new CBIC regulation permits accredited importers to manage imported goods at their facilities, easing port congestion and supporting the 'trust first' approach. This initiative is limited to authorized economic operators tier II and III importers