New Delhi, July 1 The Goods and Services Tax (GST) has been one of the most significant reforms undertaken in India over the past decade, Dr. Manoranjan Sharma, Chief Economist at Infomerics Ratings, said on Tuesday.
According to him, GST has not only expanded the country’s taxpayer base but also made doing business considerably easier compared to earlier times.
In a conversation with IANS, Sharma said, "Over the last ten years, India has witnessed several important structural changes, and GST stands out among them."
“The impact is clearly visible in the numbers. In the financial year 2024–25, GST collections stood at Rs 22.08 lakh crore, with an average monthly collection of Rs 1.84 lakh crore -- over 9 per cent higher than the previous year. In contrast, GST collections in FY 2020–21 were Rs 11.37 lakh crore,” Sharma mentioned.
He further pointed out that the number of registered taxpayers under GST has grown significantly due to periodic reforms implemented by the government.
“When GST was first introduced, there were around 60 lakh taxpayers. Today, that number has surged to 1.51 crore,” Sharma told IANS.
While acknowledging that the initial phase of GST implementation came with challenges, Sharma noted that timely government interventions helped address many of the issues.
“Over time, the adoption of GST has increased steadily, which is a very positive sign for the Indian economy,” he added.
When asked about a recent Deloitte survey that found 85 per cent of businesses believe GST has had a positive impact on their operations, Sharma agreed with the findings.
“Earlier, businesses had to deal with multiple tax rates and compliance burdens. GST has centralised the tax structure under the 'One Nation, One Tax' principle, making it much easier to do business in India,” Sharma mentioned.
He further said that while GST implementation has seen strong progress over the last seven to eight years, there is still room for improvement.
“To move forward more effectively, we need to focus on simplifying the tax process, resolving taxpayer grievances, and ensuring faster refunds,” he explained.
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