PM Modi: GST reshaped India’s economy

New Delhi

The Goods and Services Tax (GST) marked its eighth anniversary on July 1, 2025. Prime Minister Narendra Modi highlighted that this major reform has transformed India’s economy by greatly improving the Ease of Doing Business and promoting cooperative federalism. Launched in 2017 during a historic midnight session of Parliament, GST replaced many indirect taxes with a single, unified tax system. This change helped create a common national market, reduced business costs, and eased tax compliance, especially for small and medium enterprises (SMEs).

PM Modi noted that GST has been a strong driver of economic growth, making states equal partners in India’s market integration journey. The tax system’s success is evident from record collections of Rs 22.08 lakh crore in 2024-25, a 9.4% increase over the previous year. Monthly collections averaged Rs 1.84 lakh crore, the highest since GST started.

With over 1.51 crore active GST registrations, more businesses are joining the system. The GST Council, which includes central and state finance ministers, has played a key role in shaping policies to simplify and improve the system. Since 2016, it has held 55 meetings to make GST more business-friendly.

Industry surveys show growing support for GST, with 85% of business leaders satisfied, citing simpler processes, faster refunds, and better use of digital tools. Among SMEs, acceptance rose to 82%, reflecting wider trust in the system. As GST enters its ninth year, it remains focused on ease of business, better compliance, and stronger economic growth.