LatestGoods & Service Tax (GST) 15 October 2026
India's GST Council Cuts Boost Farmers, Shares, and Tax Reforms
The GST Council reduced rates for key farm inputs, cutting expenses on seed storage, tractor upkeep and coffee processing, while Karnataka proposes sharing GST revenue with local bodies. At the same time, officials debate scrapping the Securities Transaction Tax, de‑criminalise GST offences, and new research suggests GST may be less regressive than previously thought, amid a probe into back‑dated GST claims.
Key GST developments in India
- *Farmers benefit*: The GST Council’s tax cuts for agriculture lower GST on seed storage, tractor maintenance and coffee processing, reducing operating costs.
- *State revenue share*: Karnataka’s chief minister announced a proposal to the GST Council to allocate a share of GST collections to local bodies.
- *STT debate*: Analysts discuss whether India will drop only the Securities Transaction Tax (STT) or both STT and Long‑Term Capital Gains Tax (LTCGT) in a recent Investing.com analysis.
- *De‑criminalisation*: The Central Board of Indirect Taxes & Customs announced the removal of arrest powers for GST offences, easing compliance pressures (Press Release).
- *Regressivity study*: New UNSW research challenges the view that GST always hits low‑income households hardest, showing impact varies with income measurement (UNSW news).
- *Fraud probe*: An IBAC investigation uncovered suspected back‑dating of GST claims amounting to $285 million, highlighting enforcement gaps (IBAC report).
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