GST celebrates 8 years with record collections

New Delhi

India’s Goods and Services Tax (GST), one of the country’s biggest economic reforms, enters its eighth year on Tuesday (today), showing strong growth and gaining positive feedback from taxpayers. GST collections reached a record Rs 22.08 lakh crore in 2024-25, a 9.4% rise from last year. The average monthly collection was Rs 1.84 lakh crore, compared to just Rs 95,000 crore in 2020-21.

Prime Minister Narendra Modi called GST “a path-breaking legislation for New India” when it was launched on July 1, 2017. Today, GST covers more than 1.51 crore taxpayers, up from 60 lakh in its first year.

A Deloitte survey showed that 85% of taxpayers feel positive about GST, calling it simpler and more transparent. This has been the fourth straight year with improved taxpayer sentiment.

The 'One Nation, One Tax' system combined many indirect taxes into one, making business easier and reducing costs. It ended problems like double taxation and improved the movement of goods across states by removing border checkpoints. Truck travel time dropped by 33%, and fuel costs decreased.

GST helped small businesses too. Earlier, they faced tough rules under state taxes. Now, small traders with a turnover up to Rs 40 lakh are exempt, giving them relief and helping them grow.

The tax system also benefited households. Essential items like cereals, edible oils, and sugar now have lower tax rates, saving families around 4% on monthly expenses.

With these achievements, GST has strengthened India’s economy and improved Ease of Doing Business. It has created a fairer, simpler tax system and played a big role in building a stronger, more united India.