Reforming GST

GST, which turned eight, has had a considerable impact on boosting compliance and, indirect tax kitty. It is time for a revamp

- SURABHI

EIGHT YEARS AGO, the Goods and Services Tax (GST)was implemented across India. The tax, which came into force after years of negotiations between the Centre and states, subsumed a number of levies across the Union and states and brought considerable ease of doing business. Its impact is clearly visible with businesses gaining more confidence in the levy, which has also boosted compliance and widened the tax base and revenue.

The numbers say it all: The mop-up from GST has steadily risen to about ₹2 lakh crore per month from just ₹92,283 crore in the first month of its implementation in July 2017. The number of registered taxpayers had increased to 15.2 million at last count, triple the nearly six million when it was launched. Over 16.2 million returns have been filed since launch. A total of 1.22 million e-way bills were generated in May, reflecting the robust transit of goods and payment of the tax.

A recent survey by Deloitte India also revealed that businesses were showing more satisfaction with the GST with 85% of respondents in 2025 expressing confidence, compliance maturity and alignment with the tax framework as against only 59% in 2022.

But taxpayers and businesses still have some concerns and have been calling for further reforms, be it in terms of rationalising the five-tier tax rate structure, streamlining tax audits and notices between the Centre and the states, as well as reducing the compliance burden.