NEW DELHI: The launch of the Goods and Services Tax (GST) on July 1, 2017, marked a major economic reform in India by introducing the principle of "One Nation, One Tax" and creating a unified national market.
As GST completes nine years, reforms introduced under GST 2.0 in 2025 have simplified the tax structure through lower rates, exemptions, and easier compliance procedures, benefiting households, MSMEs, farmers, artisans, exporters, and other sectors.
The number of GST taxpayers has increased from 66.5 lakh in 2017 to 1.65 crore as of May 2026, reflecting greater formalisation of the economy. Gross GST collections have also risen steadily, from ?7.4 lakh crore in 2017-18 to ?22.27 lakh crore in 2025-26, with ?4.37 lakh crore collected during April-May 2026.
GST replaced 17 indirect taxes and 13 cesses, eliminating the cascading "tax on tax" effect and creating a more uniform tax system. The GST Council has strengthened cooperative federalism by enabling joint decision-making between the Centre and states.
Under GST 2.0, the tax structure has been largely streamlined into 5% and 18% slabs, while a 40% rate applies to luxury and sin goods such as tobacco, online gaming, sugary drinks, high-end cars, yachts, and private aircraft. The reforms have also simplified registration, return filing, and refunds, reducing compliance costs, particularly for MSMEs and startups.
Technology has played a central role in GST administration. The GSTN portal, e-invoicing, pre-filled returns, and automated input tax credit matching have improved transparency, reduced errors, and simplified compliance. Artificial intelligence, machine learning, and data analytics are also being used to detect tax evasion and enable risk-based monitoring, reducing scrutiny for compliant taxpayers.
GST collections have become an important indicator of economic activity, reflecting higher consumption, a broader taxpayer base, and improved compliance. (IANS)
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