After rate rationalisation, process simplification is the real test of GST as a 'Good and Simple Tax'. Examine with reference to recent GST Council decisions.

The GST Council (Article 279A) dealt with rates at its 56th meeting by cutting the number of slabs. But whether GST is "simple" depends on how taxpayers register, file returns, claim refunds and settle disputes. The 57th meeting (8 October 2026) took up this harder second stage [1].

Why process, not rates, is the real test

• Compliance cost: frequent returns and mismatches between forms burden MSMEs more than the tax rates do.
• Working capital: refunds that are slow or processed by hand lock up exporters' funds. In a sample of refund claims, CAG found 522 cases of excess or ineligible refunds worth ₹185.28 crore, caused by errors such as wrong turnover calculations and time-barred claims [3].
• Discretion: a "guilty until proven innocent" approach to enforcement leads to harassment, rent-seeking and litigation.

Recent Council decisions (57th meeting) [1]

• Registration: one circular listing all required documents, and automatic acceptance of most changes to registration details.
• Returns: better matching of GSTR-1 with GSTR-3B, and an electronic statement of reverse-charge tax and the input tax credit (ITC) claimed.
• Refunds: the refund form (RFD-01) will be machine-readable, which allows system-based checks. The turnover cap on zero-rated (export) supplies is removed.
• Litigation and officer powers: no show-cause notice for tax under ₹10,000; the prosecution threshold is raised from ₹1 crore to ₹5 crore; and guidelines on the quality and timeliness of adjudication orders.

Where the test may still fail

• Fraud risk: a drive started in May 2023 found 29,273 bogus firms with suspected ITC evasion of ₹44,015 crore [2]. Lighter checks could let more fake firms in.
• IT backbone: CAG's IT audit of GSTN found weak controls in the refund module and a risk of refunds being paid on unverified ITC [4].
• Revenue anxiety: States rely heavily on GST revenue, so a fall in collections could tempt governments back into strict, discretion-heavy enforcement.

Rate rationalisation made GST simpler on paper; the 57th meeting's process reforms aim to make it simpler in practice. The way forward is to audit the software as closely as officers were once audited, use data-led risk profiling against fake firms, and publish figures on refund times and litigation. Built through cooperative federalism, this trust-based administration can deliver the "Good and Simple Tax" that the 101st Amendment promised.