New Delhi, Jul 01: Prime Minister Narendra Modi on Tuesday described the implementation of the Goods and Services Tax (GST) eight years ago as a “landmark reform” that transformed India’s economic framework.
The Prime Minister said the indirect tax reform has reduced the “compliance burden and improved the ease of doing business.”
GST was rolled out nationwide on July 1, 2017. The system replaced a complex structure of 17 different taxes and 13 cesses, creating a unified national market by simplifying tax compliance and digitising processes. It also led to an expansion in the taxpayer base and enhanced the spirit of cooperative federalism.
In a post on X, PM Modi wrote: “By reducing the compliance burden, it (GST) has greatly improved the ease of doing business, particularly for small and medium enterprises. 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.”
In the financial year 2024-25, the gross GST collections reached a record high of ₹22.08 lakh crore, reflecting a year-on-year growth of 9.4 per cent. The growth, according to officials, indicates greater formalisation of the economy and better tax compliance. (KNO)
