India’s GST collections continue to show strong growth, reaching Rs 1.85 lakh crore in June 2024. This marks a 6.2% increase compared to the same period last year, signaling steady economic momentum. While the figure is impressive, it falls short of the record highs seen in April (Rs 2.37 lakh crore) and May (Rs 2.01 lakh crore). The GST system, which just completed eight years since its introduction, has come a long way in reshaping India’s tax landscape.
Prime Minister Narendra Modi highlighted the transformative impact of GST in a recent statement. He called it a landmark reform that has boosted economic growth and improved the ease of doing business, especially for SMEs. The one-nation-one-tax system has simplified compliance, reduced costs, and fostered cooperative federalism by making states equal partners in India’s economic integration.
Over the past five years, GST collections have doubled, touching a record Rs 22.08 lakh crore in FY25. Compare this to FY21’s Rs 11.37 lakh crore, and the growth is stark. The monthly average has also seen a significant jump from Rs 95,000 crore in 2020-21 to Rs 1.84 lakh crore in 2024-25.
The number of taxpayers has more than doubled under the GST regime, growing from 60 lakh to over 1.51 crore in eight years. A Deloitte survey reveals that 85% of taxpayers now view GST as a simplified and transparent system that makes business easier. Consumers are benefiting too, with households saving at least 4% on monthly expenses, according to a Finance Ministry study.
One of the biggest wins has been the logistics sector. Gone are the long queues of trucks at state borders. Goods now move faster, with transport times improving by over 33%. Companies are cutting fuel costs, and highways are less congested. The elimination of multiple state taxes has removed bottlenecks, making interstate commerce smoother.
While GST has faced challenges, its benefits are increasingly visible. From streamlining indirect taxes to reducing compliance burdens, the reform has played a key role in India’s economic story. With collections consistently crossing Rs 1.8 lakh crore per month, the system is proving its resilience and adaptability.