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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GSTZen · about 4 hours ago
India’s GST e-invoice and e-way bill system will enforce new API validations from 1 August 2026. Ship-to GSTIN becomes mandatory, cannot match Bill-to GSTIN, and must align with state codes. ERP users must update master data, payloads, and handle URP for unregistered consignees.
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India's Delhi government has reduced the VAT on aviation turbine fuel from 25% to 7%. The concessional rate will apply for six months, starting from 19 April 2026.
LiveLawBiz · 5 days ago
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GSTZen · 5 days ago
India's GST framework allows businesses to claim Input Tax Credit on hotel accommodation when the stay is for business purposes. Eligibility depends on valid tax invoices, GST paid, and compliance with CGST Act sections 16 and 17(5). A minimum room rate of 7500 is required for ITC eligibility.
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A2Z Taxcorp · 20 days ago
The article explains that while GST was designed to eliminate cascading tax and enable seamless input tax credit (ITC), the reality has become a compliance-driven process. ITC eligibility now hinges on invoice matching, GSTR‑2B reconciliation, Rule 36(4), Section 16(2)(aa) restrictions, and the Invoice Management System (IMS), making credit availability conditional on supplier filings and compliance data. Businesses face working‑capital pressure and litigation due to delayed or denied ITC.
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.
