“Reforms are successful only when their benefits reach the last person in the queue.” These sentiments were once expressed by Pt Deendayal Upadhyaya, a scholar of Indian intellectual tradition and politics, during a series of discourses on ‘Integral Humanism’ and “Antyodaya”(upliftment of the last person). As time passed, the country struggled to establish an economic tax structure that could unite the entire nation under a single tax regime. However, the GST reform implemented on July 1, 2017, under the leadership of Prime Minister Narendra Modi, proved to be a pivotal step in the economic sphere, fundamentally changing the perspective on the market.
Indeed, the nine-year journey of the Goods and Services Tax (GST) in India is validating Pt. Deendayal Upadhyaya’s vision. It dismantled the decades-old, complex indirect tax system and unified the entire country under a single, uniform tax regime. When reviewing this nine-year journey, one finds that “today, GST has become a robust foundation for India’s economic strength, digital governance, cooperative federalism and rapid growth.”
The market now appears enthusiastic about this tax system. Arvind Bhalchandra Mardikar, former General Secretary AIFMP and Chairman of the Hindusthan Samachar news agency- states, “A historic step was taken nine years ago. Across India, sales tax was transitioned into GST (Goods and Services Tax). Traders, business communities and industrial houses all came within its ambit. In a very short span of time, all stakeholders embraced it. While there were certainly initial curiosity, apprehensions and some anxiety, the industrial world has since wholeheartedly accepted it.”
GST as a Game-Changer for the Indian Economy
He said, “Coincidentally, at the time the decision to implement GST was being taken at the central level, I was serving as the Honorary Secretary of the All India Federation of Master Printers- an organisation representing over 250,000 printing professionals. I had the privilege of interacting with the then Finance Minister, the late Arun Jaitley, the then Minister of State for Finance Meghwal and numerous senior officials and experts. In my capacity as Honorary Secretary, I traveled across India to both explain and understand the nuances of GST. It is heartening to see a universally positive sentiment regarding GST in our country today. Undoubtedly, GST has emerged as a game-changer for the Indian economy.”
Arvind Mardikar states, “Over the past nine years, GST has demonstrated that when policy will, modern technology and transparent governance work in tandem, the nation’s economic landscape begins to transform. This is precisely why India ranks among the world’s fastest-growing major economies today, with GST emerging as a strong pillar of this achievement.”
He added, “The most significant impact of GST has been the economic integration of India. Today, any trader or industrialist in the country can conduct business in any region under relatively simplified regulations. This has fostered competition, encouraged investment and strengthened the domestic market more than ever before.”
From a Fragmented Tax System to a Unified National Market
Meanwhile, Uma Sharma, an office-bearer for the Madhya Bharat (Madhya Pradesh) chapter of the Laghu Udyog Bharati organisation, states, “Before the implementation of GST, India’s indirect tax system was extremely complex. A web of 17 different taxes and 13 cesses, including excise duty, service tax, VAT, octroi, entry tax, entertainment tax and luxury tax, levied by both the Centre and the states, posed a major challenge for traders and industries. Levying taxes at multiple stages on the same product created a ‘tax-on-tax’ situation, making goods expensive and impacting the competitiveness of industries; however, GST transformed this entire system.”
According to Uma Sharma, a uniform indirect tax system was implemented across the country, putting the concept of “One Nation, One Tax, One Market” into practice. As a result, state borders effectively vanished from a trade perspective; the transportation of goods accelerated, logistics costs decreased, and doing business across India became far easier than before. Numerous global institutions, including the World Bank, have acknowledged the improvements in the ‘Ease of Doing Business’ in India, a process in which GST has played a pivotal role. Furthermore, the transparency of the tax system has boosted investor confidence.
New Momentum for Digital India
Jitendra Gupta, All-India Co-convener of the ‘Swavalambi Bharat Abhiyan’ and a national office-bearer of Laghu Udyog Bharati, considers this one of the systems that has most significantly strengthened Prime Minister Narendra Modi’s ‘Digital India’ campaign. He said, “The GST Network (GSTN) completely digitized tax administration. Today, almost all processes, such as registration, return filing, tax payment, input tax credit, e-invoicing, and e-way bills, are conducted online. This has enhanced transparency, reduced human intervention and significantly curtailed the scope for corruption. It has saved both time and costs for taxpayers, while simultaneously enabling the government to access accurate, real-time information regarding economic activities.”
Path Made Easier for Mid-Level Businesses
Jitendra Gupta says, “The Modi government transformed GST from a mere revenue-collection tool into a vehicle for the growth of mid-level traders, startups, and MSMEs. Measures such as raising the GST registration threshold from Rs 20 lakh to Rs 40 lakh, increasing the Composition Scheme limit to Rs 1.5 crore and introducing the Quarterly Return Filing with Monthly Payment (QRMP) facility for businesses with a turnover of up to Rs 5 crore have proven to be a major relief for small traders. Meanwhile, provisions like filing ‘Nil’ returns via SMS, registration within three working days and simplified rules for e-commerce sellers have played a crucial role in integrating lakhs of small entrepreneurs into the formal economy.”
However, he also points out certain challenges associated with GST. Jitendra Gupta notes, “Micro-enterprises suffer the most; for instance, consider a manufacturer of leaf plates and bowls, their entire operation is cash-based, involving cash purchases of raw materials and cash sales. Since those with a turnover of up to Rs 40 lakh are exempt from GST, they do not obtain a GST number. Consequently, even when purchasing goods from a GST-registered shop, they cannot claim any input tax benefit because they lack a GST number themselves, yet they are still required to pay the 18% GST component to the shopkeeper.”
He recalls, “The government had previously constituted a committee to look into the interests of these small-scale entrepreneurs. The committee recommended that companies with a turnover of up to Rs 3 crore should receive a 25 per cent tax rebate and that micro-enterprises should be completely exempted from tax to foster local employment generation. The suggestion was to exempt labor-intensive (manual) work from tax while levying tax on mechanised operations; however, the government has not yet taken a decision on this. If the central government were to implement this, crores of people across the country would benefit.”
GST 2.0: A New Flight for Reforms
Nitin Yadav, an expert working on tax systems, notes that the implementation of GST 2.0 in 2025 gave a new direction to tax reforms. Tax rates were simplified, with most goods adjusted into two primary slabs: 5 per cent and 18 per cent. Simultaneously, a balance between social welfare and revenue generation was achieved by imposing a 40% tax on luxury items and goods deemed harmful to health, such as tobacco, online gaming products, carbonated drinks, ultra-expensive cars and private jets. Refund processes were expedited, compliance was simplified and procedures were made more transparent to minimize tax disputes. These reforms have infused new energy into the industrial sector, exporters, startups and MSMEs.
Direct Benefits for Common Citizens
According to Nitin Yadav, “Beyond the industrial sector, ordinary consumers have also benefited from GST reforms through rationalised tax rates on essential goods. Tax exemptions on healthcare services and essential medicines have alleviated the financial burden on families. Significant steps have also been taken to make insurance services more accessible. Affordable goods, improved availability and a transparent tax regime have strengthened consumer confidence.”
Rising Figures, Growing Confidence
The most compelling evidence of GST’s success lies in its data. According to figures released by the Central Government, the number of registered taxpayers rose from approximately 6.65 million in 2017 to around 16.5 million by May 2026. This indicates a rapid shift of the country’s economy toward the formal sector.
Gross GST collections have also consistently set new records. Collections rose from approximately Rs 7.4 lakh crore in 2017-18 to around Rs 22.27 lakh crore in 2025-26. The collection of approximately Rs 4.37 lakh crore during April-May 2026 serves as a clear indicator of the Indian economy’s strength and improved tax compliance. A Decisive Step Towards a Developed India
As India advances with the goal of becoming a developed nation by 2047, GST stands out as a cornerstone of that objective. It has simplified the tax system, accelerated trade, enhanced industrial competitiveness, fostered cooperation between the States and the Centre, and lent new strength to the digital economy.
In this context, the nine-year journey of GST demonstrates that a historic transformation of the nation’s economic structure is achievable through the synergy of visionary leadership, continuous reform and modern technology. This is precisely why this reform has emerged as a powerful instrument in realizing the visions of ‘New India,’ ‘Atmanirbhar Bharat’, ‘Digital India’ and a ‘Developed India.’
