GST Turns 8: Reform Drives Record ₹22.08 Lakh Crore Collection in 2024–25
New Delhi, June 30: India’s Goods and Services Tax (GST) completes eight years on July 1, marking a key milestone in the country’s economic unification. Rolled out in 2017 to replace multiple indirect taxes, GST was hailed by Prime Minister Narendra Modi as a “path-breaking legislation for New India.”
Since then, the reform has significantly improved tax compliance, business efficiency, and government revenue. In FY 2024–25, gross GST collections soared to a record ₹22.08 lakh crore, reflecting 9.4% year-on-year growth more than double the ₹11.37 lakh crore collected in FY 2020–21.
According to Deloitte’s latest report GST@8, the robust growth is driven by government reforms, clearer taxpayer guidelines, and technological upgrades to the GST portal. The average monthly collection in FY 2024–25 rose to ₹1.84 lakh crore, up from ₹95,000 crore in 2020–21.
India’s GST has four main tax slabs: 5%, 12%, 18%, and 28%, with special rates for items like gold and diamonds. A Compensation Cess continues on sin goods to support states.
Active GST registrations crossed 1.51 crore by April 2025, indicating greater formalisation. The dual GST model CGST, SGST, and IGST ensures balanced revenue sharing. With revenues rising from ₹14.83 lakh crore in 2021–22 to ₹20.18 lakh crore in 2023–24, GST remains central to India’s economic progress.
