The Goods and Services Tax (GST) on July 1 2025, marks eights years since its launch. GST was introduced in 2017 and was a landmark reform taht simplified India’s complex indirect tax system by bringing multiple state and central taxes under one roof. It aimed to make tax compliance easier, reduce business costs, and enable smoother movement of goods across states. Over the years, GST has boosted transparency, improved efficiency, and strengthened the foundation of a more unified national economy.
Prime Minister Narendra Modi had called it “a path-breaking legislation for New India.” Eight years later, the results back that claim. In 2024–25, GST collections reached a record Rs 22.08 lakh crore — a 9.4 pr cent increase from the previous year. This growth highlights stronger tax compliance and the increasing formalisation of the economy.
A recent report by Deloitte titled GST@8 described the past year as a blockbuster for GST. The report highlighted the government’s timely reforms, clear guidance to taxpayers, and regular upgrades to the GST portal as key factors behind this success. These steps not only made it easier to do business but also strengthened the tax base.
Journey of GST: Key Milestones
– 2000: GST was first conceptualized; a committee was set up to design the framework.
– 2003–04: The Fiscal Responsibility and Budget Management (FRBM) Committee recommended implementing GST.
– 2006: The Union Finance Minister announced in the Budget Speech that GST would be introduced from April 1, 2010.
– 2009: The first discussion paper on GST was released, laying the groundwork for public and stakeholder engagement.
– 2011: The Constitution (115th Amendment) Bill was introduced in Parliament to incorporate GST provisions.
– 2011–13: The GST Bill was referred to a Standing Committee for further review.
– 2014: The 115th Amendment Bill lapsed with the dissolution of the 15th Lok Sabha.
– 2014–15: A fresh Constitution (122nd Amendment) Bill was introduced and passed in May 2015.
– August 2016: The Constitution (101st Amendment) Act was enacted, paving the way for GST.
– September 2016: The GST Council was formed and held its first meeting.
– May 2017: The GST Council finalized and recommended all supporting rules.
– 1st July 2017: GST was officially rolled out across India, replacing multiple indirect taxes with a single tax system.
