Major GST Update: ITC Relief Proposal, Record GST Collections & GSTAT Deadline Extended:

The GST Council will likely be considering a proposal that may offer immense relief for businesses. According to the proposal, businesses may be permitted to retain their ITC irrespective of the fact whether the supplier has deposited GST to the government or not.

The ITC of the buyer will not be affected even if the GSTR-2B of the supplier is prepared and the buyer has proof of payment. Currently, buyers may be deprived of their ITC even if they have paid for the GST on the purchase made from the supplier.

This change will ensure that there is no loss of money on the part of honest traders due to non-payment of GST by their suppliers to the Government.

In case this recommendation is approved by the GST Council, an honest buyer following all guidelines and paying suppliers will not lose his/her Input Tax Credit (ITC).

Gross GST collections in India for June 2026 stood at Rs 1,94,812 crore, which is a growth of 13.9% from June 2025 and almost touches the Rs 2 lakh crore mark.

The primary driver behind this growth was the huge growth in GST collections on imports, which witnessed an increase of 34.6% to Rs 60,038 crore, whereas domestic GST collection grew 6.5% to Rs 1,34,774 crore.

Overall, the GST revenue has risen by Rs 23,707 crore from Rs 1,71,105 crore in June 2025 to Rs 1,94,812 crore in June 2026.

From the above data, it is clear that high tax collection from imports played the most important role in raising GST revenue.

It is stated in an official communication that the government has allowed for extending the due date of filing appeals before GSTAT until July 31, 2026.

"The Government has extended the due date for filing of appeals before the Goods and Services Tax Appellate Tribunal (GSTAT) under Section 112(1) read with Section 112(3) to 31.07.2026," the official communication stated.

In the past, the deadline for GSTAT appeals was set as June 30, 2026. This deadline has been further extended after the stakeholders faced some problems in filing their appeals due to a lot of rush to file the same via GSTAT.

It is advisable for the taxpayers to plan in advance and not wait till the last date.

Goods and Services Tax Appellate Tribunal (GSTAT) refers to an independent body established under the GST Act to decide upon appeals arising from orders made by GST Authorities.

The GST Appellate Tribunal acts as a platform to resolve GST disputes between taxpayers and tax authorities.