6 years of GST: India's unprecedented indirect tax reform that dared to revolutionise the economic landscape
July 1, 2017: India woke up to an unprecedented transformation in its tax landscape as the Goods and Services Tax (GST) took center stage, promising to be the answer to demands for a streamlined indirect taxation system for 1.4 billion citizens. With its motto, «One nation, One market, One tax,» GST aimed to bring unity and benefits for all stakeholders, governments, taxpayers, and administrators alike.The giant leap in taxation history: One umbrella for all GST's introduction marked a significant milestone in the history of taxation in India.
The introduction of this comprehensive system was particularly remarkable in a diverse and federal country like India where multiple tax laws were consolidated into a single system. In implementation of GST was no small feat.
It required the collaboration of the Central government and 29 states to create a dual GST model, unique in the world. Despite doubts about its successful execution, the tax base more than doubled from 2017, with revenues witnessing substantial growth over the years.
The taxpayer base has witnessed a remarkable increase, surging from 63.9 lakh in 2017 to approximately 1.40 crore currently. Despite the revision in threshold turnover limits, GST revenues have experienced substantial growth.
In its initial year, the monthly average stood at ₹89,885 crore, but it has now stabilized at a robust 'new normal' ₹1.50 lakh crore in the last financial year, reaching a peak of ₹1.87 lakh crore in April 2023. Nonetheless, when the size of the GST taxpayer base is compared to that of income-tax, it is apparent that there is scope for many more business entities and companies to enrol for GST, Central Board of Indirect Taxes and Customs Chairman Vivek Johri and Additional
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