India today (July 1) celebrates the eighth anniversary of the Goods and Services Tax (GST), that transformed the country’s indirect tax system.

Launched by former Finance Minister Arun Jaitley in 2017, GST replaced a complex web of state and central taxes with a unified structure to simplify compliance and promote economic integration.

Prime Minister Narendra Modi had hailed GST as “a path-breaking legislation for New India.” Eight years later, the numbers reflect its growing impact.

In the financial year 2024–25, gross GST collections reached a record Rs 22.08 lakh crore, a 9.4 per cent year-on-year growth. While, the average monthly collection stood at Rs 1.84 lakh crore.

A recent report by Deloitte titled GST@8 described the past year as a “blockbuster” for the tax system.

The GST system has several feature, including destination based taxation, input tax credit, threshold exemption, etc

The GST Council, comprising representatives from the Union and State governments, determines tax rates. The current structure of the tax includes four main slabs like 5 per cent, 12 per cent, 18 per cent, and 28 per cent.

Special rates apply to select items — 3 per cent on jewellery, 1.5 per cent on polished diamonds, and 0.25 per cent on rough diamonds.

A Compensation Cess is levied on goods like tobacco, aerated drinks, and motor vehicles to offset state revenue losses.

Established under Article 279A of the Constitution, the GST Council is the apex body guiding GST implementation. It includes members--the Union Finance Minister (chairperson), Union Minister of State for Finance, and Finance Ministers from all states. 

Since inception, the Council has held 55 meetings and played a crucial role in refining the GST framework.

GST has eased the burden on micro, small, and medium enterprises (MSMEs). The exemption threshold for goods was raised from Rs 20 lakh to Rs 40 lakh, allowing many small businesses to operate with reduced compliance.

The composition scheme further simplifies tax filing for businesses with turnover up to Rs 1.5 crore for goods and Rs 50 lakh for services.

Moreover, platforms like the Trade Receivables Discounting System (TReDS) have improved access to finance.

As of May 2024, four digital platforms are authorised for TReDS operations, with over 5,000 buyers and 66 financial institutions participating.

GST has also benefited consumers by lowering tax rates on essential items such as cereals, edible oils, and snacks.

According to Finance Ministry, GST helped households save up to 4 per cent on monthly expenses. Meanwhile, the number of registered taxpayers has grown from 60 lakh to 1.51 crore.

As of April 30, 2025, there are over 1.51 crore active GST registrations. GST collections have shown consistent growth over years, here is a summary of GST collections between since 2020 and 2025: