Rama Krishna Sangem
Goods and Services Tax (GST), which was launched on July 1, 2017, completes eight years on Monday. There were doubts when it was introduced by the Narendra Modi led BJP government then, bit it has become a roaring success many people joining the stream, to claim input credit. Of course, GST was conceived and planned by the Congress led UPA government years before, but the take off date was postponed several times. Finally, it took off on July 1, 2017.
Gross GST collections doubled in five years to reach an all-time high of Rs 22.08 trillion in the 2024-25 fiscal year from Rs 11.37 trillion in FY21, government data showed on Monday. The gross goods and services tax (GST) collections touched its highest-ever level of Rs 22.08 trillion in 2024-25, registering a 9.4 per cent growth over the previous fiscal year.
The average monthly collection stood at Rs 1.84 trillion in FY25, up from Rs 1.68 trillion in FY24 and Rs 1.51 trillion in FY22. In eight years, the number of registered taxpayers under GST has risen from 65 lakh in 2017 to over 1.51 crore.
Steadily increased collections
“Since its rollout, the goods and services tax has shown strong growth in revenue collection and tax base expansion. It has steadily strengthened India’s fiscal position and made indirect taxation more efficient and transparent,” a government statement on eight years of GST said.
In 2024-25, GST recorded its highest-ever gross collections of Rs 22.08 trillion, reflecting a year-on-year growth of 9.4 per cent. In 2023-24 and 2022-23, GST collections were Rs 20.18 trillion and Rs 18.08 trillion in 2022-23. In 2021-22, total gross GST collections were Rs 11.37 trillion, and the average monthly collection was Rs 95,000 crore.
GST subsumed about 17 local taxes and 13 cesses into a five-tier structure, simplifying the tax regime. Monthly GST collection had touched a record high of Rs 2.37 trillion in April 2025. In May 2025, it was at Rs 2.01 trillion. The numbers for June will be released on Tuesday. In her interviews to media this week, FM Nirmla Sitharaman said that there would be more reforms in the GST slabs and structure in the coming days, making it one of the best in the world.
