New Delhi— India’s Goods and Services Tax (GST) collections rose to ₹1.85 lakh crore in June 2024, marking a 6.2% increase compared to the same period last year, according to official data released on Tuesday.
Despite maintaining collections above ₹1.8 lakh crore for the month, the figures were lower than the record-breaking ₹2.37 lakh crore in April and ₹2.01 lakh crore collected in May.
As GST marks eight years since its rollout on July 1, 2017, the government announced that total collections have doubled in the past five years, reaching ₹22.08 lakh crore in FY25, compared to ₹11.37 lakh crore in FY21.
Prime Minister Narendra Modi, reflecting on the milestone, called GST a landmark reform that has reshaped India’s economic framework. “By reducing compliance burdens, GST has significantly improved the Ease of Doing Business, especially for small and medium-sized enterprises. It has also become a key driver of economic growth and has strengthened cooperative federalism by making states equal partners in integrating India’s market,” the Prime Minister stated in a post on X.
Since the introduction of GST, the number of registered taxpayers has more than doubled — from 60 lakh in 2017 to over 1.51 crore in 2024.
The average monthly GST collection in FY25 has been ₹1.84 lakh crore, reflecting strong economic momentum. In comparison, FY21 recorded total collections of ₹11.37 lakh crore with a monthly average of ₹95,000 crore. Collections rose to ₹14.83 lakh crore in FY22, ₹18.08 lakh crore in FY23, and further to ₹20.18 lakh crore in FY24 — indicating steady growth in tax compliance and economic activity.
The One-Nation One-Tax system has simplified tax compliance, reduced business costs, and facilitated seamless movement of goods across states. GST consolidated various indirect taxes like excise duty, service tax, VAT, and others into a unified structure, eliminating the cascading effect of taxes and ensuring uniformity across the country.
According to a Deloitte survey, 85% of taxpayers reported a positive experience with GST, praising it as a simplified, transparent tax system that has enhanced the ease of doing business.
A study by the Finance Ministry also highlighted that GST has resulted in at least a 4% reduction in household monthly expenses, making daily necessities more affordable for consumers.
GST has also revolutionised the logistics sector. Long queues of trucks at state borders and corruption-prone checkpoints are now largely eliminated, leading to faster and smoother movement of goods across states.
Transport time has improved by over 33%, according to multiple studies, with companies reporting reduced fuel costs and less congestion on major highways.
With inputs from IANS