Monthly US Tax Bulletin - June 2026
NewsletterThe June 2026 edition of the Grant Thornton Bharat Monthly US Tax Bulletin provides a concise summary of recent key developments in federal and state taxes in the US.
GST@9: The rise of GST 2.0
Nine years after its introduction, the Goods and Services Tax (GST) has evolved from a landmark indirect tax reform into one of India’s most significant instruments of economic formalisation and digital governance. What began as an ambitious effort to unify a fragmented tax structure has matured into a comprehensive platform that captures real-time economic activity across consumption, production, and trade. Today, GST extends beyond taxation, influencing business decision-making, strengthening supply-chain transparency, and enabling policymakers to access actionable economic insights.
As the regime enters a new phase, the focus has shifted from stabilisation to certainty, driven by technological innovation, policy refinements, and institutional developments. The operationalisation of the GST Appellate Tribunal (GSTAT), growing adoption of data analytics, and increasing use of intelligent compliance mechanisms mark the emergence of GST 2.0. This next chapter represents a move towards a more transparent, technology-enabled, and resilient tax ecosystem capable of supporting India’s long-term economic ambitions.
What is GST 2.0 and why does it matter?
GST 2.0 reflects the transformation of India’s tax framework from a system focused on harmonisation to one driven by intelligence and automation. Between 2017 and 2020, GST concentrated on building a unified national market through rate rationalisation, return stabilisation, and the introduction of e-way bills. The subsequent phase accelerated digitalisation through e-invoicing, Aadhaar authentication, automated return systems, and technology-led compliance mechanisms.
Today, GST has entered an era of intelligent tax administration, where analytics, risk-based scrutiny, AI-assisted assessments and automated compliance frameworks are shaping policy implementation and enforcement. The introduction of the Invoice Management System (IMS), operationalisation of GSTAT and increasing reliance on data-driven governance demonstrate how GST is evolving from a return-based compliance model into a proactive and intelligence-led ecosystem. As a result, GST 2.0 is not merely a tax reform; it is a foundational pillar of India’s digital economy and governance framework.
Foundation years
2017-2020
Building a unified tax nation
- One nation, one tax
- Return filing stabilisation
- Rate corrections
- E-way bill introduction
- Initial jurisprudence
Digital transformation
2020-2023
Building a digital tax ecosystem
- QRMP
- E-Invoicing
- Aadhaar authentication
- Auto-population
- Technology adoption
Intelligent administration
2023-2026
Building an intelligent tax ecosystem
- IMS
- GSTAT
- AI analytics
- Risk-based scrutiny
- Automated compliance
Nine years since its introduction, GST stands out as a transformative tax reform and has firmly established itself as one of the most dependable reflections of India's economic vitality. Today's GST collections, return filings and compliance trends provide an early pulse on consumption and business activity, often signalling shifts in economic momentum ahead of broader macroeconomic indicators. Though the journey involved overcoming implementation challenges, frequent regulatory changes and interpretational complexities, the consistent growth in collections highlights not just improved compliance but also greater formalisation of the economy and closer alignment between tax buoyancy and overall growth. GST 2.0 and its rate rationalisation were a thoughtfully planned reform, designed to alleviate the tax burden, eliminate distortions, boost competitiveness and increase disposable income for consumers. Despite external pressures—like tensions in West Asia, rising oil prices, and currency volatility—India’s resilience was reinforced by GST 2.0, which played a pivotal role in supporting domestic consumption and stabilising the economy. Looking ahead, as India transitions towards a more digital, transparent and consumption-driven landscape, GST will remain far more than just a measure of economic activity; it will continue to be a cornerstone of our evolving economic framework.
Devesh Uniyal
Partner and Tax & Finance Consulting Leader, Grant Thornton Bharat
GST@9 dashboard
GST at a glance
Notifications
1200+
Circulars
50+
GST Council meetings
56
Advisories
600+
Instructions
40+
GST at 9 is no longer just a tax reform story. It marks the year in which GST moved from reform to recalibration. As India remains one of the world’s fastest-growing major economies, the consistency of GST collections, increasingly near the INR 2 lakh crore monthly mark, reflects a wider tax base, deeper formalisation and resilient consumption. However, the real shift is in GST 2.0 rate rationalisation, GSTAT operationalisation, faster refunds, streamlined registrations, and a simpler compliance architecture, which have made the law more responsive to business realities. At the same time, IMS, biometric registration, e-invoicing analytics, AI-led risk profiling and system-based validations are pushing the regime from return filing to real-time compliance.
As GST enters its next decade, the focus should shift towards resolving long-standing structural issues that continue to impact businesses. GST 3.0 presents an opportunity to address key industry expectations, including the inclusion of petroleum products within the GST framework, a more comprehensive refund mechanism for sectors facing inverted duty structures, seamless credit flow, automated refunds, fewer interpretational disputes and greater policy certainty. The next phase of GST should be built on trust, predictability and intelligent administration, where technology enables compliance without overwhelming businesses.
Krishan Arora
Partner , Tax Planning & Optimisation and India Investment Roadmap leader
Building the digital backbone
GST reforms in India have advanced on the strength of a robust digital tax infrastructure. What began as a platform for registration and return filing has evolved into an integrated compliance ecosystem through e-way bills, e-invoicing, analytics, IMS, and AI-led scrutiny. This digital evolution has improved transparency and reduced information asymmetry between taxpayers and authorities. With technology at its core, GST is moving towards a near real-time, exception-based compliance framework that enhances efficiency, strengthens governance, and supports a more responsive tax administration.
How AI is transforming GST compliance
The evolution of GST from a filing system to a data-driven platform has laid the foundation for integrating artificial intelligence into tax administration. Every e-invoice, e-way bill, return, and payment generates valuable transactional data that can be analysed to improve compliance outcomes.
Today, AI in GST Compliance is already supporting risk identification, fraud detection, invoice validation, and registration verification. Advanced analytics help authorities identify unusual filing patterns, map suspicious supplier-recipient networks, and detect anomalies before audits begin. Rather than relying solely on manual scrutiny, intelligent systems can prioritise cases based on risk indicators and behavioural patterns.
The future of GST in India is likely to be characterised by proactive compliance monitoring, predictive assessments, and intelligent taxpayer support, enabling authorities to focus on exceptions while reducing unnecessary compliance burdens for businesses.
Over the past nine years, GST has evolved from a complex structural reform into a more stable and business-friendly framework. Introduced in July 2017 with multiple rate slabs, frequent changes, and initial technological challenges, it posed significant compliance difficulties, especially for smaller enterprises.
Since then, efforts to rationalise rates and resolve issues, such as inverted duty structures, have reduced complexity across sectors. Technological advancements—including e-invoicing, improved return filing systems, and a more stable GSTN portal—have enhanced compliance efficiency and predictability.
Recent policy measures signal a shift toward system-driven compliance, with initiatives such as the Invoice Management System and the proposed hard-locking of GSTR-3B improving accuracy and control over input tax credit. The rollout of GSTAT is expected to expedite dispute resolution.
While challenges remain, GST’s trajectory has been progressive, strengthening transparency, compliance discipline, and ease of doing business in India.
Sohrab Bararia
Partner, India Investment Advisory, Grant Thornton Bharat
GST 3.0 roadmap
The GST 3.0 roadmap envisions a more integrated, simplified, and intelligent tax ecosystem. Key priorities include bringing petroleum and electricity within the GST framework to create a seamless credit chain, reducing compliance burdens through auto-populated returns and real-time credit availability, and strengthening AI-driven compliance systems through predictive audits and intelligent risk assessment.
The roadmap also calls for faster dispute resolution through faceless audits and end-to-end digital litigation, alongside deeper integration between GST, direct tax, and customs databases. Rationalised rate structures, reduced classification disputes, and a unified taxpayer data ecosystem are expected to form the foundation of the next phase of GST reforms in India.
Conclusion
As GST completes nine years, it stands as one of the world’s largest and most sophisticated digital tax ecosystems. Its contribution extends beyond revenue generation to promoting transparency, economic formalisation, and the creation of a unified national market. The transition from GST 1.0 to GST 2.0 highlights the growing role of technology, analytics, and intelligent governance in shaping tax administration. Looking ahead, the future of GST in India will depend on continued efforts to simplify, provide policy certainty, implement integrated compliance systems, and ensure seamless credit flows. Through the successful implementation of the GST 3.0 roadmap, India has the opportunity to build a tax framework that is not only efficient and predictable but also aligned with the country’s broader growth ambitions.
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