8 Years of GST: Top 5 Achievements That Have Shaped India’s Tax Landscape
July 2025 marks eight years since the Goods and Services Tax (GST) was rolled out in India—one of the most ambitious and transformative tax reforms the country has seen. Introduced in July 2017 with the vision of “One Nation, One Tax,” GST replaced a complex web of central and state taxes with a unified system that aimed to make taxation simpler, improve compliance, and widen the tax base.
Eight years on, the impact of GST is visible in how businesses operate, how governments collect taxes, and how the country’s economy is formalising. Below are five major achievements of GST that have redefined India’s tax regime:
1. One Nation, One Tax: Simplifying the Tax Structure
Before GST, businesses had to deal with a host of indirect taxes such as VAT, excise duty, service tax, octroi, and entry taxes—often varying from state to state. This not only created administrative hurdles but also led to inefficiencies in the supply chain.
With GST, these various taxes were subsumed into a single, comprehensive tax, applicable nationwide. Goods now move freely across state borders without lengthy delays at checkposts, reducing logistics costs and improving the ease of doing business. The streamlined structure has been a game-changer, particularly for small businesses and inter-state trade.
2. Boosting the Formal Economy
One of the key benefits of GST has been its role in encouraging greater formalisation of the economy. By mandating GST registration for businesses crossing specific turnover thresholds, the tax system has pulled in thousands of small traders, start-ups, and online sellers into the tax net.
This expansion of the formal economy has resulted in higher tax compliance and improved transparency. According to the Press Information Bureau (PIB), as of April 30, 2025, India had over 1.51 crore active GST registrations, showing a healthy expansion of the taxpayer base.
Karthik Mani, Partner, Indirect Tax, at BDO India, noted, “Beyond any doubts, implementation of GST in India is one of the key taxation reforms that not only changed the way businesses manage their taxes but also helped them adopt technology and improve efficiencies.”
3. Record-Breaking Revenue Collection
Since its inception, GST has consistently enhanced India’s revenue performance. In FY 2024–25, GST collections touched an all-time high of ₹22.08 lakh crore, marking a 9.4% growth over the previous fiscal year. Monthly average collections have crossed ₹1.84 lakh crore, reflecting both stronger compliance and economic growth.
This steady revenue stream has helped strengthen fiscal health and allowed the government to fund welfare programs and infrastructure development. The consistency in GST collections, even during economic disruptions like the pandemic, showcases the robustness of the system.
4. Simplified Compliance Through Technology
Initial apprehensions about GST largely centered around complex filing procedures and technological barriers. However, over the years, the GST portal and related tools have evolved to become more user-friendly.
Taxpayers can now file returns, pay taxes, claim refunds, and track input credits entirely online. The introduction of schemes like QRMP (Quarterly Returns with Monthly Payment) has made compliance easier for small businesses. Additionally, mobile apps and improved backend support have further simplified day-to-day operations.
These tech-driven innovations have reduced human interface and opportunities for corruption while ensuring a faster and smoother taxpayer experience.
5. Strengthened Centre-State Coordination
One of GST’s most remarkable achievements lies in its institutional framework, particularly the GST Council. Comprising the Union Finance Minister and finance ministers of all states, the Council is a powerful symbol of cooperative federalism.
The Council meets regularly to review tax rates, exemptions, and policy updates. This collaborative approach has not only helped resolve disputes but has also brought a sense of shared responsibility and consensus-building to fiscal matters between the Centre and states.
Looking Ahead: Evolving for a Viksit Bharat
While GST has addressed many structural issues, challenges remain. The government is now focusing on rate rationalisation, automation, and reducing litigation over minor procedural issues. There is a growing expectation that the system will become simpler and more efficient in the coming years.
“While the GST law has overcome its teething issues, it would be critical to understand how the law would evolve in the next decade to support the Government’s initiative of Viksit Bharat by 2047,” said Karthik Mani. He added that resolving procedural complexities and high-value disputes will be crucial for sustaining progress.
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