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GST Council meeting 2026: What may change as GST 2.0 takes aim at ITC, refunds, arrest powers and other reforms

·Economic Times·Impact 3/5 · Notable

The GST Council is meeting in New Delhi to propose significant reforms for tax administration. These reforms aim to address issues such as arrest powers for tax officers, requiring court orders for detentions, which could reduce the risk of arbitrary arrests. The changes also include unblocking input tax credits on certain business expenses, benefiting various industries. This could lead to increased economic activity and growth, as businesses have more access to tax credits.

Read the source report: Economic Times →

Why it matters

The GST Council is proposing significant reforms for tax administration, which could lead to increased efficiency and reduced compliance costs for businesses. This could have a positive impact on the Indian economy, making it more attractive to investors and

Market impact

Impact score
3 / 5
Market signal
Positive / risk-on
Category
Market moves
Model confidence
65%

Markets & countries in focus

India

Transmission channels

Tax reforms→Increased compliance→Improved business environment→Economic growth→Investor confidence

Likely winners & losers

Winners

  • Indian equities
  • Financial services
  • Small businesses

Under pressure

  • Tax evaders
  • Informal sector

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MeridStreet does not reproduce source articles. The summary and analysis above are generated by MeridStreet from public headlines and its own market model; the original reporting belongs to Economic Times. For information only — not financial advice.