India's GST collections touch record ₹22L crore in FY25
What's the story
India's Goods and Services Tax (GST) collections have doubled in the last five years, hitting a record ₹22.08 lakh crore for FY25. The figure marks a 9.4% year-on-year growth from the ₹20.18 lakh crore that was collected in FY24. The average monthly GST collection for FY25 was ₹1.84 lakh crore, higher than previous fiscal years' averages of ₹1.68 lakh crore (FY24) and ₹1.51 lakh crore (FY22).
Tax evolution
Tax base expanded significantly
Since its introduction in July 2017, the GST has witnessed steady growth. The number of registered taxpayers under this system has jumped from 65 lakh in 2017 to over 1.51 crore in FY25. The government said that the GST has not only improved revenue collection but also expanded its tax base significantly, thereby strengthening India's fiscal position over time.
Tax reform
GST replaced around 17 state and central taxes
The GST has replaced roughly 17 state and central taxes as well as 13 cesses, simplifying the indirect tax system into a single five-tier structure. The Centre has said that the new system made indirect taxation more efficient and transparent. Monthly collections under this regime have also been hitting new highs this year, with April recording ₹2.37 lakh crore collected, followed by ₹2.01 lakh crore in May.