6 months have passed by since the beginning of 2025 – now that was a tumultuous first half. Now get this – eight years have gone by since the implementation of the Goods and Service Tax (GST)….. just like that. In this time, India has seen demonetisation, endured a global pandemic that brought the economy to a standstill, and witnessed technological shifts that redefined daily life.
Yet through all these upheavals, the Goods and Services Tax (GST) has remained constant, steadily evolving, and instrumental in reshaping India’s taxation landscape while assisting towards its vision of “One Nation, One Tax.”
As GST completes eight years since its launch on July 1, 2017, it presents a moment to reflect on its transformative journey, the milestones crossed, the challenges endured, and the road ahead.
Eight Years Gone By: A Transformative Period in India’s History
Since its rollout, GST has fundamentally altered how businesses, governments, and consumers engage with India’s indirect tax system. Prime Minister Narendra Modi had described GST as “a path-breaking legislation for New India” at its midnight launch, underscoring its significance as a tool of economic unification.
Over the years, GST collections have reflected this growing maturity and formalisation. In 2024–25, gross collections reached a record ₹22.08 lakh crore, registering a 9.4% increase over the previous year. Monthly collections in March 2024 alone touched ₹1.78 lakh crore, showcasing the system’s strengthening compliance and transparency.
Are You GST Compliant? Get the Clarity You Need on RCM, Click Here
India’s Pre-GST Tax Landscape and Long Road to Consensus
Before GST, India’s tax regime was a patchwork of state and central levies, including VAT, excise duty, service tax, octroi, entry tax, and others. Each of these created layers of compliance, cascading taxes, and barriers to seamless interstate trade.
The idea of GST as a unified tax was first formally floated in 2000 under the Atal Bihari Vajpayee government, with the formation of an empowered committee of state finance ministers.
Yet, churning the concept into law required almost two decades of negotiation, multiple constitutional amendment bills, and persistent efforts to build consensus. The Constitution (122nd Amendment) Bill of 2014 and its eventual passage in 2016 as the Constitution (101st Amendment) Act finally laid the legislative foundation for GST, aided by the formation of the GST Council in September 2016 to steer its implementation.
The Birth of GST: Launch to National Rollout
July 1, 2017, marked a watershed moment in India’s economic history as GST replaced a complex matrix of indirect taxes with a single tax on the supply of goods and services. The rollout, while ambitious, did not steer away from its share of troubles. Businesses scrambled to align their systems to new rules, and the GST Network (GSTN) portal faced early technical glitches.
Are You GST Compliant? Get the Clarity You Need on RCM, Click Here
The government however, responded with timely reforms and upgrades to the digital infrastructure, a fact acknowledged in reports like Deloitte’s GST@8, which described the past year as a “blockbuster” for GST, crediting the Centre’s guidance, portal improvements, and responsiveness to stakeholder concerns.
Milestones That Shaped GST
Over its eight-year journey, GST’s evolution has been marked by significant milestones that have deepened its reach and refined its structure.
Take a look at the Year-by-Year Evolution of GST
2000: A committee of State Finance Ministers (Empowered Committee) was set up to design the GST model.
2003–04: The Fiscal Responsibility and Budget Management (FRBM) Committee recommended the introduction of GST.
2006: The Union Finance Minister announced a proposed GST rollout date of April 1, 2010, during the Budget Speech.
2009: The first discussion paper on GST was released for public and stakeholder engagement.
2010: President Pranab Mukherjee announced the delay in GST implementation, proposing a new rollout date of April 2011.
2011: The Constitution (115th Amendment) Bill was introduced in the Lok Sabha and referred to the Standing Committee for detailed examination.
2013: The Standing Committee submitted its report on the Constitution (115th Amendment) Bill.
2014: The Bill lapsed with the dissolution of the 15th Lok Sabha; the Constitution (122nd Amendment) Bill was introduced in the new Lok Sabha.
2015: The 122nd Amendment Bill was passed by the Lok Sabha and referred to the Select Committee in the Rajya Sabha.
2016: The Constitution (101st Amendment) Act was enacted. Assam became the first state to ratify the Bill. The GST Council was formed in September.
2017: The CGST, IGST, UTGST, and GST Compensation Bills were passed; GST was officially launched on July 1, 2017.
2018: Introduction of TDS provisions and the e-way bill system for interstate goods movement.
2019: The reverse charge mechanism was introduced along with restrictions on input tax credit under Section 36(4).
2020: Voluntary e-invoicing began, the QRMP scheme was introduced, and relief measures were provided during COVID-19.
2021: GSTR-8 was introduced; GST applied to services supplied by e-commerce operators and certain government loan guarantees.
2022: Auto-population of GSTR-3B returns from GSTR-1 and GSTR-2B commenced; e-invoicing thresholds were reduced further.
2023: Mandatory six-digit HSN codes were introduced for B2B invoices; further system refinements implemented.
2024: The government notified the constitution of the GST Appellate Tribunal (GSTAT); preparatory work for its functioning began.
2025: GST marked its eighth anniversary; hard-locking of auto-populated liabilities in GSTR-3B introduced; GSTAT expected to become operational.
The GST Council being the nerve centre of policy making, has played a crucial role in rate rationalisation, defining exemptions, and simplifying compliance.
Together, these milestones have laid the groundwork for a more unified, transparent, and efficient indirect tax system in India.
The GSTAT and the Long Wait for Adjudication Reform
Are You GST Compliant? Get the Clarity You Need on RCM, Click Here
While GST aimed to simplify taxation, the absence of a dedicated appellate tribunal that was mandated under Section 109 of the CGST Act remained a glaring gap. For over seven years, litigants had to approach overburdened High Courts in the absence of the Goods and Services Tax Appellate Tribunal (GSTAT), creating delays and legal uncertainties.
Almost 2,706 days after GST’s rollout, the government finally notified the constitution of GSTAT regional benches in late 2024, with former Chief Justice Sanjaya Kumar Mishra appointed as its first President. The tribunal’s operationalisation, expected by the end of the current financial year, promises to provide a specialised redressal forum, ensure uniformity in GST jurisprudence, and relieve the High Courts of the mounting backlog of tax disputes.
Achievements, Hurdles, and Ongoing Challenges
Eight years of GST have delivered notable achievements. The tax has broadened the base of registered businesses, enhanced compliance, and formalised large portions of the finance system. The unified structure has helped reduce the cascading effect of taxes, lowered logistics costs, and eased interstate trade. Consumers have seen some benefits too; a Finance Ministry study noted an average saving of at least 4% on household monthly expenses post-GST.
Yet, challenges are ever-present. Frequent changes in rates and compliance requirements, especially in the initial years, have tested businesses, particularly small and medium enterprises.
The complexity of multiple tax slabs and procedural burdens continue to pose hurdles, while rate rationalisation remains an unfinished agenda.
Furthermore, delays in the establishment of adjudication mechanisms like the GSTAT underscored gaps in institutional preparedness. Technical glitches, especially during the early rollout, and varying interpretations of certain provisions have contributed to compliance difficulties and legal disputes.
The Future of GST in India’s Economic Landscape
Looking ahead, the GST journey is far from complete. The government has signalled its intent to simplify the structure further, with Finance Minister Nirmala Sitharaman recently stating, “The expectation is that it [GST rates] will come down, and we are working on it.” Discussions are going on within the GST Council to move towards fewer tax slabs and address anomalies that have crept into the system over time.
The impending full functionality of GSTAT is expected to streamline adjudication and reduce litigation timelines. Meanwhile, technological advances, including greater use of data analytics and artificial intelligence, are set to further enhance compliance and reduce evasion.
As India navigates these reforms, GST remains a work in progress—a bold tax experiment that continues to map the contours of India’s economic integration and administrative modernisation.