EIGHT YEARS OF GST

Today, 1 July 2025, marks eight years since the Goods and Services Tax (GST) was introduced, unifying India's indirect taxes into a single system. GST has simplified compliance, boosted transparency, and strengthened the economy, driving record revenues and supporting millions of businesses. As it enters its ninth year, this report highlights its key achievements and impact.

- TDG NETWORK

On 1 July 2025, the Goods and Services Tax (GST) will complete eight years since its rollout.Introduced in 2017 as a major step towards economic integration, GST replaced a maze of indirect taxes with a single, unified system. It made tax compliance easier, reduced costs for businesses, and allowed goods to move freely across states. By improving transparency and efficiency, GST helped lay the foundation for a stronger, more integrated economy.

Prime Minister Narendra Modi had called it "a path-breaking legislation for New India." Eight years on, the numbers speak for themselves. 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.

A recent report by Deloitte titled GST@8 described the past year as a blockbuster for GST. It credited the government's timely reforms, clear guidance to taxpayers, and steady upgrades on the GST portal as key reasons behind this success. These measures not only improved ease of doing business but also strengthened the tax base.

JOURNEY OF GST Structure and Key Features of the GST System GST rates in India are determined by the GST Council, which includes representatives from the Union and State or Union Territory governments. The current GST structure consists of four main rate slabs: 5 percent, 12 percent, 18 percent and 28 percent. These rates apply to most goods and services across the country.

In addition to the main slabs, there are three special rates: 3 percent on gold, silver, diamond and jewellery, 1.5 percent on cut and polished diamonds and 0.25 percent on rough diamonds. A GST Compensation Cess is also levied on select goods such as tobacco products, aerated drinks and motor vehicles at varying rates. This cess is used to compensate states for any revenue loss resulting from the transition to the GST system.