GST Collection Doubles Over 5 Years, Reaches ₹22.08 Lakh Crore in 2024-25
The Goods and Services Tax (GST), introduced by the Government of India in July 2017, marked a significant reform in the country’s tax structure. It unified multiple indirect taxes under a single umbrella, streamlining the process and widening the tax base. In just five years, GST collections have doubled, reflecting robust economic activity and improved tax compliance.
Record Collection Figures
According to recent data released by the central government, the GST revenue for the financial year 2024–25 stands at ₹22.08 lakh crore. In comparison, the previous year, 2023–24, recorded a collection of ₹20.18 lakh crore. This represents a year-on-year growth of 9.4%.
The sharp increase in revenue is a strong indicator of economic recovery, increased consumption, and better enforcement. The government’s push for digitalization—through mechanisms like e-invoicing and e-way billing—has further helped in plugging tax leakages and boosting compliance.
Taxpayer Base Expansion
When GST was implemented in 2017, the number of registered taxpayers stood at around 65 lakh. Over the years, this number has grown significantly to over 1.51 crore as of 2024. This more than two-fold increase is the result of expanding formalization of the economy, particularly among small and medium enterprises.
The widening taxpayer base is one of the key factors that has contributed to the rising revenue figures. It also indicates improved transparency in business transactions and better integration of informal sectors into the tax net.
Contributing Factors
Several factors have contributed to this remarkable growth in GST revenue:
- Economic growth post-pandemic, with increased production and consumption.
- Improved compliance mechanisms like e-invoicing, which makes tax evasion harder.
- Enhanced monitoring and enforcement using technology-driven tools.
- Broadening of the tax base with more businesses coming under the GST ambit.
- Regular audits and analysis by the GST council to refine rates and reduce anomalies.
Future Outlook
The doubling of GST collections in just five years is a strong sign of maturing tax administration and a growing economy. With further reforms and continued efforts to bring more businesses into the formal economy, GST collections are expected to rise even further in the coming years.
This steady growth also means better fiscal strength for the government, enabling higher investments in infrastructure, healthcare, education, and welfare schemes.
Conclusion
India’s GST system, despite initial challenges, has now evolved into a robust framework that supports transparency, growth, and fiscal consolidation. The record-breaking ₹22.08 lakh crore collection for FY 2024–25 is not just a financial milestone but a testament to India’s evolving economic structure and administrative efficiency. If this trend continues, GST will remain a cornerstone of India’s economic future.
