Next-Generation GST: From Transition to Transformation

When India rolled out the Goods and Services Tax (GST) in July 2017, it was not just a new tax—it was a new architecture for the Indian economy.

- Amit Malviya is the national head of BJP's Information & Technology and Sah Prabhari of West Bengal

When India rolled out the Goods and Services Tax (GST) in July 2017, it was not just a new tax—it was a new architecture for the Indian economy. For decades, businesses were trapped in a maze of state-level VATs, octroi, entry taxes, service tax and cesses, each creating its own paperwork, compliance burdens, and opportunities for evasion. Goods were taxed multiple times, cascading costs inflated prices, and consumers ultimately paid the penalty. GST corrected this structural unfairness by replacing a jungle of 17 taxes and 13 cesses with the principle of One Nation, One Tax.

Eight years later, the results are undeniable. The taxpayer base has more than doubled—from 66 lakh in 2017 to over 1.5 crore in 2025. Revenues have surged, with gross GST collections touching 22 lakh crore last year, more than double in just four years. Monthly revenues that averaged 82,000 crore in 2017-18 now routinely cross 2 lakh crore. A Deloitte survey this year found that 85% of businesses, including MSMEs, are satisfied with GST. Clearly, GST has reshaped India's economic landscape.

However, reforms of this scale are never static. The GST that came into force in 2017 was a delicate compromise between the Centre and States. The design had to protect state revenues, shield essentials from high taxes, and simplify compliance for businesses—all at once. That balancing act worked, but eight years on, fresh challenges are visible: rate complexity, inverted duty structures, classification disputes, and compliance costs for small firms. The next phase of GST reforms must therefore move from transition to consolidation—making the system simpler, fairer, and more growth-oriented.

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