GST: A Transformative Force in India's Economic Landscape
On the eighth anniversary of GST, Prime Minister Modi hailed it as a landmark reform reshaping India's economy. The GST has unified multiple taxes, enhancing business ease, particularly for SMEs, while promoting federal cooperation. GST collections have seen exponential growth, reflecting economic formalization and improved compliance.
- Country:
- India
Marking eight years since its establishment, the Goods and Services Tax (GST) is being celebrated as a cornerstone of India's economic reform. Prime Minister Narendra Modi lauded the regime as a transformative force, significantly improving the ease of doing business, especially for small and medium enterprises.
Introduced on July 1, 2017, GST unified 17 taxes and 13 cesses, streamlining compliance and digitizing tax systems to create a seamless national market. The initiative has broadened the taxpayer base and fostered true cooperative federalism, emphasizing states as equal partners.
In its first nine months, GST collections reached Rs 7.40 lakh crore. By 2024-25, revenues skyrocketed to Rs 22.08 lakh crore, evidencing a year-on-year growth of 9.4%. This surge illustrates increased economic formalization and better tax compliance, as reported by the finance ministry.
(With inputs from agencies.)
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