In October 2025, India’s Goods and Services Tax collections reached ₹1,95,936 crore, up 4.6% from the previous year, partly due to festive spending. GST, introduced in 2017, replaced multiple indirect taxes to create a unified system. While industrialized states like Maharashtra, Karnataka, Gujarat, Tamil Nadu, and Haryana contributed over 40% of revenue, 20 states saw declines compared to pre-GST levels. Analysis shows that overall GST revenue remains lower than pre-GST taxes, with states like Mizoram and Nagaland improving collections, while Punjab, Chhattisgarh, Karnataka, Madhya Pradesh, and Odisha experienced significant drops.
Click to View MoreGST transformed the indirect tax system, boosting revenue and formalizing the economy, but challenges like the exclusion of petroleum products, a complex rate structure, and delays in dispute resolution require reforms like phased inclusion of excluded sectors and deeper digital integration to achieve the "One Nation, One Tax" ideal and fuel economic growth.
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