September 16, 2025
India’s GST taxpayer base has expanded from 65 lakh in 2017 to 1.51 crore in 2025
Gross GST receipts have grown from ₹7.19 lakh crore in 2017 to ₹22 lakh crore, with monthly collections averaging nearly ₹2 lakh crore
GST 2.0 reforms simplified registration to a three-day process and resolved classification disputes by standardising food items at 0% or 5%
The reforms were framed around relief for citizens, support for farmers, reduced MSME input costs, and economic growth in key sectors
Union Finance Minister Nirmala Sitharaman said the Goods and Services Tax (GST) regime has delivered benefits to both the public and State governments, with the latest reforms marking a major rationalisation of rates. Addressing the joint conclave of Trade and Industries Association in Chennai on the theme ‘Tax Reforms for Rising Bharat’, she said 99% of goods earlier taxed at 12% have now been brought under the 5% slab.
She described the reform as one that directly impacts all 140 crore Indians, noting that GST rate cuts in the range of 10–13% would reduce household expenses and increase disposable savings. She expressed confidence that companies would pass on the benefits to consumers.
The Minister highlighted the growth of the tax base since GST’s rollout in 2017, with taxpayers rising from 65 lakh to 1.51 crore. Gross GST receipts, she said, have expanded from ₹7.19 lakh crore in 2017 to ₹22 lakh crore now. Monthly collections average between ₹1.9 lakh crore and ₹2 lakh crore, split equally between Centre and States, with 41% of the Centre’s share devolved back to States.
Sitharaman said the GST 2.0 reforms, which took nearly eight months of preparatory work, were implemented with consensus from all State Finance Ministers. Rates for over 350 items were reduced, registration was simplified to a three-day process, and classification disputes were addressed. She explained that food items have now been placed under a uniform 0% or 5% slab to eliminate ambiguity.
She stressed that the reforms were policy-driven and designed around five priorities: relief for daily-use items, benefits for the poor and middle class, support for farmers, reduction in raw material costs for MSMEs, and targeted growth for sectors that boost the economy.
Industry leaders including A.R. Unnikrishnan of CII Tamil Nadu and G.S.K. Velu of FICCI welcomed the reforms. However, Linesh Sanatkumar of the Hindustan Chamber of Commerce flagged concerns over the GST hike on paper and paperboard from 12% to 18%, calling it a shock to the sector. He also sought rationalisation for coastal shipping and inland water transport. A.M. Vikramaraja of the Tamil Nadu Traders Association raised concerns over alleged harassment by GST officials and urged the creation of a committee to resolve disputes, along with a scheme to settle past dues.
Source: The Hindu