Goods and Services Tax completes nine years in India today since its implementation in 2017. The reform was introduced with the objective of establishing a unified indirect tax system under the “One Nation, One Tax” vision. It was designed to simplify the tax structure, to reduce complexity and create a common national market.
GST brought 17 different taxes and 13 cesses under a unified framework. The earlier indirect tax system also resulted in additional costs and a tax-on-tax effect. Before GST was implemented, India’s indirect tax system included multiple central and state-level taxes, which resulted in different tax rates and varying compliance requirements across the country.
According to a Press Information Bureau release, the number of GST taxpayers has increased from 66.5 lakh in 2017 to 1.65 crore as of May 2026. Gross GST collections have also grown steadily over the years, reaching around Rs 22.27 lakh crore in 2025–26.
How GST 2.0 Changed the Tax Structure
The GST framework has evolved through a series of reforms. In its latest phase of reforms, GST 2.0 represents a further step in India’s indirect tax overhaul. The introduction of Next-Generation GST, commonly known as GST 2.0, came into effect in September 2025.
It replaces the earlier four-slab system with a simplified structure based on two main rates of 5 per cent and 18 per cent that aims to make taxation more transparent, easier to understand and less burdensome for businesses and consumers. GST 2.0 also introduced a 40 per cent tax rate on luxury and sin goods, including lottery and online gaming, tobacco, aerated drinks, high-end cars, yachts and private aircraft, with the aim of maintaining revenue balance.
The reforms mark the latest phase in GST’s evolution, reflecting the government’s focus on simplifying the indirect tax system.
Commenting on GST’s nine-year journey, Vishal Raheja, Founder & Managing Director, InvestoXpert Advisors, said: GST has evolved into one of India’s most impactful economic reforms, laying the foundation for a more formal, transparent and technology-driven economy. Since its implementation, the GST taxpayer base has grown from nearly 65 lakh businesses to over 1.5 crore registered taxpayers, while average monthly GST collections have increased from around Rs 95,000 crore in FY18 to consistently exceeding Rs 2 lakh crore. These numbers reflect stronger compliance, wider tax coverage and a significantly more organised business ecosystem.
He added that the real estate sector, which GST has simplified taxation, reduced structural inefficiencies and enhanced the confidence of institutional investors. The next phase of reforms should focus on rationalising GST on construction materials, re-evaluating Input Tax Credit provisions and ensuring long-term policy stability.
According to him, a more balanced and sector-specific GST framework will improve capital efficiency, reduce project costs, encourage formal investments and strengthen real estate’s role as one of India’s largest employment generators and a key driver of economic development.”
