GST's 8th Year: Ease of Doing Business & Compliance

New Delhi, Jul 1 (PTI) The focus of the Goods and Services Tax (GST), which completes eighth year on Tuesday, will now be on promoting ease of doing business, ensuring stronger compliance and fostering broader economic inclusion, the finance ministry said.

The GST, which was implemented from July 1, 2017, has unified 17 taxes and 13 cesses, creating a seamless national market by simplifying compliance and digitising tax systems. It has also expanded the taxpayer base and strengthened cooperative federalism.

"As GST enters its ninth year, it continues to evolve, prioritising ease of doing business, stronger compliance, and broader economic inclusion, solidifying its role as a driver of India's economic progress," the finance ministry said while releasing 'GST's 8-Year Report Card'.

The gross GST collections in the first year of operation (9 months) were Rs 7.40 lakh crore. Over the years, it has witnessed exponential growth.

In 2024-25, gross GST collections hit a record Rs 22.08 lakh crore, marking a year-on-year growth of 9.4 per cent. This rise reflects the growing formalisation of the economy and improved tax compliance.

Annual GST revenues nearly tripled, rising from Rs 7 lakh crore in FY 2017-18 to Rs 22 lakh crore in FY 2024-25, it said.

Consistent double-digit growth signals not just a strengthening economy but a maturing, tech-driven tax ecosystem marked by better compliance, reduced leakages, and lower taxpayer burden, it said.

Rising collections reflect better enforcement and input tax credit (ITC) controls, it said, adding that India's GST collection rose to its highest-ever of Rs 2.37 lakh crore in April 2025.

Over 162 crore GST returns have been filed as of May 2025, reflecting the scale, adoption, and growing trust in a streamlined, digital-first tax system over just eight years, it said.

GST unified indirect taxes into one simplified regime with standardised slabs (0 per cent, 5 per cent, 12 per cent, 18 per cent, and 28 per cent) and a centralised digital platform (GSTN) for seamless registration, filing, and payments, cutting compliance costs and boosting ease of doing business.

Eight years since its launch in 2017, it said, the GST remains a cornerstone of India's economic reforms, replacing a fragmented web of indirect taxes with a streamlined, unified tax system.

By fostering a common national market, GST has enhanced efficiency, reduced business costs, and increased transparency in taxation, it said.