India’s GST rationalisation introduced a two‑tiered rate structure of 5% and 18% in September 2025, boosting domestic consumption. However, February 2026 saw a sharp rise in import IGST collections—up 17% YoY—driven by a weaker rupee and higher import costs, which may erode the price relief from the new rates.
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Economic Times · 10 days ago
The Supreme Court has upheld a 28% GST on online gaming, applying it retrospectively to curb unregulated wagering. The ruling targets real‑money games and aims to aid investigations into money laundering. The decision marks a significant shift in India's approach to digital gambling.
Economic Times · 21 days ago
The Supreme Court dismissed Uttar Pradesh’s attempt to levy a 21% state VAT on natural gas transported from Andhra Pradesh to Uttar Pradesh, ruling the transaction is an interstate sale governed by the Central Sales Tax Act. The decision upheld a 2012 Allahabad High Court judgment that quashed UP’s assessment orders against Reliance Industries, Tata Chemicals and IFFCO. The ruling confirms that gas transported through common pipelines remains an interstate sale even when co‑mingled.
Aviation Jeta · 22 days ago
The Delhi government has lowered the VAT on Aviation Turbine Fuel (ATF) from 25% to 7% for airlines operating in the capital. The reduced rate will apply for an initial six‑month period, providing relief to airlines and passengers amid rising fuel costs.
Republic World · 23 days ago
The Delhi government has reduced the VAT on aviation turbine fuel (ATF) from 25% to 7% effective 16 May 2026. The change applies to airlines purchasing fuel at Delhi airports, providing significant cost savings for the aviation sector.
Frontline · 2 months ago
India’s GST, launched in 2017, was intended to unify indirect taxes and balance fiscal power between the Union and States. However, successive rate cuts, the expiration of the compensation guarantee in 2022, and the 2025 three‑tier reform have eroded state revenue, deepening fiscal dependence on the Union.
A2Z Taxcorp · 2 months ago
Vito Tanzi, former IMF Fiscal Affairs Director, has urged India to replace its multi‑rate GST slabs with a single uniform rate for all domestic consumption and to redistribute the entire revenue equally to every citizen via per‑capita digital transfers linked to Aadhaar accounts. The proposal was presented at an international conference on the socio‑economic impacts of GST organised by the Centre for Development Studies.
Key Takeaways
India introduced a two‑tiered GST rate structure of 5% and 18% in September 2025.
Import IGST collections rose to ₹47,800 crore in February 2026, up from ₹40,800 crore a year earlier—a 17% increase.
Import IGST accounted for roughly 27% of gross GST collections in that period, up from about 24% the previous year.
The rupee fell about 4% against the dollar, raising assessable values and thereby increasing import IGST collections.
Primary source
Read the full article at The HinduThis summary was published on VATfaqs.com on 2 March 2026. It relates to VAT developments in India. The original source is The Hindu.
