Eight Years Of GST: PM Modi Hails Reform As Growth Engine And Game-changer For Businesses

Prime Minister Narendra Modi on Tuesday celebrated eight years of the Goods and Services Tax (GST), calling it a landmark reform that transformed India’s economic landscape. In a statement on X, he said GST improved the ease of doing business, especially for small and medium enterprises, by cutting down compliance burdens.

“GST has also served as a powerful engine for economic growth, while fostering true cooperative federalism by making states equal partners in this journey to integrate India’s market,” Modi added.

He had earlier described GST as “a path-breaking legislation for New India” at its launch on 1 July 2017.

GST collections hit an all-time high of ₹22.08 lakh crore in 2024–25, growing 9.4 per cent year-on-year. The average monthly collection touched ₹1.84 lakh crore. In comparison, collections were ₹11.37 lakh crore in 2020–21, rising steadily to ₹14.83 lakh crore in 2021–22, ₹18.08 lakh crore in 2022–23, and ₹20.18 lakh crore in 2023–24.

The number of registered taxpayers more than doubled, from 60 lakh to over 1.51 crore. The unified tax replaced multiple levies like excise duty, VAT, and service tax, reducing the cascading effect of taxes. This made compliance easier and created a consistent tax structure across states.

According to a Deloitte survey, 85 per cent of taxpayers described their experience with GST as positive. They found the system simpler and more transparent, which contributed to the overall ease of doing business.

GST has also been consumer-friendly. Tax rates on everyday goods like cereals, edible oils, snacks, and sweets have dropped. A Finance Ministry study showed that households now save up to four per cent on monthly expenses due to GST.

In the logistics sector, GST removed checkpoints and border delays, allowing trucks to move freely. Transport time has improved by over 33 per cent. Fuel usage dropped, and highways became less congested, cutting logistics costs for businesses.

Overall, GST reform in India has boosted growth, increased compliance, and created lasting benefits for both businesses and consumers.

Also Read: GST Collections Double In Five Years; Hit Record ₹22.08 Lakh Crore In FY25