Media365
Nine years after the Goods and Services Tax (GST) was rolled out in one of India’s most ambitious economic reforms, the indirect tax regime appears to have entered a more mature phase, marked by record revenue collections, widespread digital adoption and growing acceptance among businesses.
From a tax reform that initially faced compliance challenges and political opposition, GST has evolved into a digital backbone for India’s indirect tax system. The latest official figures released by the Finance Ministry on the ninth anniversary of GST point to a tax network that now serves 1.65 crore registered taxpayers, processes billions of invoices and return filings, and consistently delivers monthly revenues close to the Rs 2 lakh crore mark.
The milestone comes just a day after India reported
gross GST collections of Rs 1.95 lakh crore in June, up 13.9 per cent from a year earlier, underscoring the resilience of domestic economic activity even amid global uncertainties. Strong import tax collections and steady domestic revenues pushed first-quarter GST collections for FY27 to Rs 6.32 lakh crore, reflecting sustained momentum in consumption and manufacturing.
Digital tax system comes of age
Government data shows the GST ecosystem has expanded dramatically since its launch on July 1, 2017.
The GST Network (GSTN) has so far handled 192.73 crore return filings, processed 2,886 crore invoice uploads, generated 778.10 crore e-Way Bills, and completed 47.03 crore payment transactions. The portal has facilitated cumulative tax payments worth Rs 108.98 lakh crore, while recording peak daily traffic of 43.51 lakh return filings and 14.96 lakh payment transactions.
The numbers reflect how GST has transformed tax administration from a largely paper-based process into one of the world’s largest digital compliance platforms.
“GST reforms have strengthened India’s growth journey through a simpler, more transparent and citizen-centric indirect tax system, easing the burden on essential sectors while enhancing the ease of living and ease of doing business,” the Finance Minister’s Office said in a post on X.
Corporate India embraces GST
The government’s assessment is backed by a growing shift in business sentiment.
According to
Deloitte’s Survey, positive sentiment towards GST has risen to 84 per cent, compared with 59 per cent in 2022, indicating that businesses increasingly view the tax regime as a facilitator rather than a compliance burden.
The survey found that 69 per cent of respondents consider digital compliance to be GST’s biggest achievement, while 50 per cent said the latest GST 2.0 rate rationalisation has had a positive impact on their businesses.
The gains have been particularly visible across consumer-facing sectors. Nearly 74 per cent of respondents from the consumer industry and 72 per cent from healthcare reported positive outcomes following recent tax reforms.
Small businesses have also become more comfortable with the system. Around 77 per cent of micro, small and medium enterprises (MSMEs) surveyed said they now have a positive overall experience with GST, reflecting improvements in filing systems, digital processes and compliance mechanisms.
Rate rationalisation broadens benefits
The latest phase of GST reforms has focused on rationalising tax rates across essential goods and services.
The government said taxes have been reduced on several everyday household products, including hair oil, shampoo, toothpaste and household utensils, bringing many items into the 5 per cent tax bracket.
Agricultural equipment such as tractor parts, drip irrigation systems and soil cultivation machinery has also moved to lower tax slabs.
The healthcare sector has received significant relief, with GST on individual health and life insurance reduced to nil, while medical oxygen, diagnostic kits and spectrometers now attract lower tax rates.
Consumer durables including certain air conditioners, large televisions and specific hybrid vehicles have also seen GST reduced from 28 per cent to 18 per cent as part of the government’s broader rate rationalisation exercise.
Officials say the changes are aimed at boosting consumption while lowering the tax burden on households.
Revenue growth reflects economic resilience
Tax experts say the steady rise in GST collections indicates both stronger compliance and resilient economic activity.
Mahesh Jaising, Partner and Indirect Tax Leader at Deloitte India, said the June revenue figures demonstrate the positive impact of recent GST reforms.
“The strong growth in GST collections at 11.2 per cent (net) underscores the positive impact of the Government’s recent GST rate reform measures. The GST rate rationalisation exercise undertaken in September 2025 has strengthened domestic consumption, leading to increased revenue for business and higher collection of taxes,” he said.
Jaising noted that more than half the respondents in Deloitte’s GST@9 Survey reported a positive business impact from rate rationalisation, while nearly 40 per cent observed higher consumption following the reforms.
He added that the 42.2 per cent increase in net GST collections from imports points to rising imports of raw materials and intermediate goods, signalling sustained manufacturing activity and continued momentum under the government’s Make in India initiative.
The nearly 29.1 per cent rise in refunds issued during June, he said, also reflects efforts to improve business liquidity and support exporters.
Reform agenda still unfinished
Despite broad acceptance, businesses continue to seek further reforms.
Ritesh Kanodia, Partner at Aurtus Legal, said GST has succeeded in unifying India’s fragmented indirect tax system and expanding the tax base.
“Over nine years, GST has delivered important rationalisations across essentials, healthcare, education, automobiles and electronics. These cuts have lowered the headline tax burden, but the pass-through to consumers has been uneven, often offset by supply chain costs and compliance challenges,” he said.
“The bigger success of GST is in unifying India’s indirect tax regime and widening the tax base.”
Kanodia, however, said accumulated input tax credit issues, complex compliance requirements and assessment procedures remain major concerns for industry.
“Going forward, addressing inverted duty structures, easing compliance for small businesses, and streamlining assessments will be critical to ensure GST translates into tangible benefits for both businesses and consumers,” he added.
Focus shifts to GST 2.0
As GST completes nine years, the debate has moved beyond the reform itself.
Businesses are now demanding quicker refunds, fewer tax disputes, simpler compliance, AI-enabled tax administration and a more predictable tax framework.
For policymakers, the challenge is no longer persuading businesses to adopt GST. Instead, the focus has shifted to making the system smarter, faster and simpler while sustaining revenue growth.
With collections approaching the Rs 2 lakh crore monthly mark, digital compliance becoming the norm and industry confidence at its highest level since GST’s launch, the indirect tax regime appears to be entering a new phase—one defined less by transition and more by optimisation.
