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On 1 July 2025, the Goods and Services Tax (GST) completed eight years since its rollout. GST was introduced in 2017 as a major step towards economic integration and replaced indirect taxes with a single, unified system. It made tax compliance easier, reduced costs for businesses, and allowed goods to move freely across states. By improving transparency and efficiency, GST helped lay the foundation for a stronger, more integrated economy.
The number of active taxpayers has also seen a sharp rise. As of 31st May 25, there are over 1.52 crore active GST registrations,
| Category | Number of Taxpayers |
|---|---|
| Normal Taxpayers | 1,33,23,171 |
| Composition Taxpayers | 14,81,562 |
| Input Service Distributor | 20,578 |
| Tax Collector at Source | 22,835 |
| Tax Deductor at Source | 3,74,229 |
| Others | 3,808 |
| Total Taxpayers | 1,52,23,716 |
Major highlights of 8 years of GST are as follows:
- There are over 1.52 crore active GST registrations.
- Top 5 states accounted for ~50% of total Active GST Tax Payers.
- One-fifth of registered taxpayers have at least one female member and 14% of registered taxpayers have all female member.
- In just five years (FY25 over FY21), gross GST collection has doubled. Even average monthly gross GST collection now ~Rs 2 lakh crore.
- Top 5 states account for 41% of gross revenue.
- 6 states have crossed Rs 1 lakh crore mark.
- States having GST collection of more than Rs 1 lakh crore have IGST share of more than 30% in their total domestic collection emphasizing the contribution of larger states in pushing GST collection across other states.
GST rates in India are determined by the GST Council, which includes representatives from the Union and State or Union Territory governments. The current GST structure consists of four main rate slabs: 5 percent, 12 percent, 18 percent and 28 percent. These rates apply to most goods and services across the country.
In addition to the main slabs, there are three special rates: 3 percent on gold, silver, diamond and jewellery, 1.5 percent on cut and polished diamonds and 0.25 percent on rough diamonds. A GST Compensation Cess is also levied on select goods such as tobacco products, aerated drinks and motor vehicles at varying rates. This cess is used to compensate states for any revenue loss resulting from the transition to the GST system.
Since the first introduction of a Value Added Tax in France in 1954, VAT/GST has now been adopted by 175 countries around the world. The latest is Guinea-Bissau, implemented VAT on 1 January 2025. A further 19 other countries, notably the US, have instead adopted a sales tax, a single-layer turnover tax. It is important to note that a majority of these countries have exempted certain essential goods such as food, education, and health services, amongst others. Hence, the standard rates do not apply to such goods.
| Country | Standard Rate |
|---|---|
| Australia | 10% |
| Bangladesh | 15% |
| Canada | 5% (additional HST applicable in some states) |
| China | 13% |
| France | 20% |
| Germany | 19% |
| India | 12% and 18%* |
| Indonesia | 10% |
| Japan | 8% |
| Mexico | 16% |
| Netherlands | 21% |
| New Zealand | 15% |
| Pakistan | 17% |
| Russia | 20% |
| Saudi Arabia | 15% |
| Singapore | 7% |
| South Africa | 15% |
| South Korea | 10% |
| Switzerland | 7.70% |
| Thailand | 7% (reduced from 10% for the time being) |
| UAE | 5% |
| UK | 20% |
Top 5 states in GST
| State | Total | Share in Total | Share in Total GSDP |
|---|---|---|---|
| Uttar Pradesh | 20,08,112 | 13.2% | 8.4% |
| Maharashtra | 18,43,226 | 12.1% | 13.3% |
| Gujarat | 12,78,348 | 8.4% | 8.0% |
| Tamil Nadu | 11,72,178 | 7.7% | 8.9% |
| Karnataka | 10,48,796 | 6.9% | 8.4% |
| Rajasthan | 9,13,011 | 6.0% | 5.0% |
| Delhi | 8,12,981 | 5.3% | 3.7% |
| West Bengal | 7,90,508 | 5.2% | 5.4% |
| Bihar | 6,58,735 | 4.3% | 2.8% |
| Haryana | 5,70,757 | 3.7% | 3.6% |
| Madhya Pradesh | 5,69,247 | 3.7% | 4.4% |
| Telangana | 5,43,104 | 3.6% | 4.8% |
| Andhra Pradesh | 4,28,976 | 2.8% | 4.7% |
| Kerala | 4,25,746 | 2.8% | 3.7% |
| Punjab | 4,17,619 | 2.7% | 2.5% |
| Odisha | 3,51,256 | 2.3% | 2.8% |
| Assam | 2,26,430 | 1.5% | 1.9% |
| Jharkhand | 2,12,680 | 1.4% | 1.5% |
| Uttarakhand | 2,08,593 | 1.4% | 1.1% |
| Chhattisgarh | 1,90,692 | 1.3% | 1.7% |
| Jammu and Kashmir | 1,51,969 | 1.0% | 0.8% |
| Himachal Pradesh | 1,30,125 | 0.9% | 0.7% |
| Others | 2,70,627 | 1.8% | 1.9% |
Registered Taxpayers having female member
| Constitution of business | Total no. of taxpayers registered (Number) | Total no. of taxpayers registered (Share) | % of Taxpayers having at least one female member | % of Taxpayers having all female members |
|---|---|---|---|---|
| Proprietorship | 1,17,19,409 | 77.6% | 16.7% | 16.7% |
| Partnership | 14,70,847 | 9.7% | 41.9% | 5.3% |
| Private Limited Company | 10,19,642 | 6.8% | 46.8% | 5.0% |
| Government Department | 1,96,337 | 1.3% | 0.6% | 0.5% |
| Limited Liability Partnership | 1,68,206 | 1.1% | 48.2% | 7.4% |
| Society/ Club/ Trust/ AOP | 1,43,689 | 1.0% | 21.7% | 8.7% |
| Local Authority | 1,04,279 | 0.7% | 1.2% | 1.0% |
| Public Limited Company | 86,306 | 0.6% | 43.7% | 1.4% |
| Hindu Undivided Family | 86,040 | 0.6% | 4.2% | 0.5% |
| Others | 85,067 | 0.6% | 9.8% | 7.6% |
| Any other body notified by committee | 10,006 | 0.1% | 0.1% | 0.1% |
| Public Sector Undertaking | 6,278 | 0.0% | 14.3% | 2.2% |
| Statutory Body | 4,802 | 0.0% | 2.6% | 1.6% |
| Foreign Company | 1,886 | 0.0% | 10.9% | 2.5% |
| Foreign Limited Liability Partnership | 144 | 0.0% | 44.4% | 6.9% |
| Unlimited Company | 128 | 0.0% | 42.2% | 4.7% |
| Total | 1,51,03,066 | 100.0% | 21.3% | 14.1% |
State-Wise GST Collection (Rs.cr)
| State | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 | CAGR(%) | Share(FY25) | FY26 (AprMay) |
| Maharashtra | 1,05,186 | 1,70,289 | 1,85,917 | 1,65,308 | 2,17,993 | 2,70,346 | 3,20,117 | 3,59,855 | 19.2 | 16.3% | 73,176 |
| Karnataka | 48,138 | 78,762 | 83,408 | 75,660 | 95,926 | 1,22,822 | 1,45,266 | 1,59,564 | 18.7 | 7.2% | 32,114 |
| Gujarat | 45,905 | 73,440 | 78,923 | 74,346 | 97,155 | 1,14,221 | 1,25,168 | 1,36,748 | 16.9 | 6.2% | 26,706 |
| Tamil Nadu | 45,318 | 70,562 | 74,430 | 69,121 | 85,492 | 1,04,377 | 1,21,329 | 1,31,115 | 16.4 | 5.9% | 26,061 |
| Haryana | 36,815 | 55,233 | 59,560 | 54,890 | 68,142 | 86,668 | 1,02,914 | 1,19,362 | 18.3 | 5.4% | 24,227 |
| Uttar Pradesh | 36,858 | 61,323 | 65,281 | 59,721 | 73,865 | 87,970 | 1,01,693 | 1,12,212 | 17.2 | 5.1% | 22,731 |
| Delhi | 26,445 | 39,845 | 44,161 | 36,568 | 46,253 | 55,843 | 66,445 | 77,002 | 16.5 | 3.5% | 18,626 |
| West Bengal | 23,333 | 39,780 | 43,386 | 39,694 | 47,898 | 58,060 | 62,613 | 66,892 | 16.2 | 3.0% | 14,509 |
| Telangana | 21,346 | 36,408 | 39,820 | 36,346 | 45,081 | 51,831 | 59,942 | 62,987 | 16.7 | 2.9% | 12,293 |
| Odisha | 14,849 | 26,948 | 29,677 | 29,844 | 44,335 | 49,442 | 54,748 | 60,928 | 22.3 | 2.8% | 11,283 |
| Rajasthan | 18,463 | 30,721 | 32,821 | 31,797 | 38,480 | 45,458 | 50,174 | 54,785 | 16.8 | 2.5% | 11,065 |
| Madhya Pradesh | 15,544 | 25,683 | 28,354 | 27,005 | 31,255 | 36,232 | 42,174 | 45,072 | 16.4 | 2.0% | 9,035 |
| Andhra Pradesh | 14,327 | 25,331 | 27,108 | 26,163 | 32,710 | 40,232 | 44,298 | 44,825 | 17.7 | 2.0% | 8,490 |
| Chhattisgarh | 13,008 | 22,932 | 24,160 | 24,419 | 29,571 | 31,968 | 34,874 | 37,183 | 16.2 | 1.7% | 7,026 |
| Jharkhand | 14,162 | 23,916 | 22,847 | 20,482 | 27,854 | 32,019 | 34,738 | 36,841 | 14.6 | 1.7% | 7,074 |
| Kerala | 10,857 | 16,343 | 19,234 | 17,349 | 22,264 | 27,371 | 30,677 | 33,109 | 17.3 | 1.5% | 6,646 |
| Punjab | 9,643 | 13,977 | 15,235 | 13,913 | 18,406 | 20,949 | 24,061 | 26,721 | 15.7 | 1.2% | 5,517 |
| Uttarakhand | 10,967 | 15,150 | 14,722 | 12,339 | 13,680 | 16,845 | 19,231 | 20,670 | 9.5 | 0.9% | 4,197 |
| Bihar | 5,531 | 10,755 | 12,640 | 11,638 | 13,534 | 16,548 | 18,021 | 20,208 | 20.3 | 0.9% | 4,160 |
| Assam | 4,969 | 8,988 | 10,423 | 10,030 | 12,007 | 13,710 | 15,602 | 17,415 | 19.6 | 0.8% | 3,719 |
| Himachal Pradesh | 5,309 | 7,593 | 7,960 | 7,055 | 8,023 | 8,778 | 9,956 | 10,352 | 10.0 | 0.5% | 1,944 |
| Others | 13,077 | 22,792 | 24,334 | 22,153 | 27,621 | 33,294 | 39,207 | 41,849 | 18.1 | 1.9% | 8,990 |
| Domestic | 5,40,049 | 8,76,770 | 9,44,403 | 8,65,842 | 10,97,545 | 13,24,985 | 15,23,249 | 16,75,697 | 17.6 | 75.9% | 3,39,588 |
| IGST and CESS on Import | 2,00,558 | 3,00,575 | 2,77,719 | 2,70,964 | 3,85,746 | 4,82,695 | 4,95,001 | 5,33,164 | 15.0 | 24.1% | 98,179 |
| Gross Revenue | 7,40,607 | 11,77,345 | 12,22,122 | 11,36,805 | 14,83,291 | 18,07,680 | 20,18,249 | 22,08,861 | 16.9 | 100.0% | 4,37,767 |
State-wise Break-up of Gross Domestic GST Collections (FY25)
| State | Rs crore | Share in total collection | |||||||
| CGST | SGST | IGST | CESS | TOTAL | CGST | SGST | IGST | CESS | |
| Maharashtra | 98,729 | 1,13,769 | 1,21,415 | 25,942 | 3,59,855 | 27% | 32% | 34% | 7% |
| Karnataka | 36,905 | 45,314 | 59,550 | 17,794 | 1,59,564 | 23% | 28% | 37% | 11% |
| Gujarat | 37,931 | 45,540 | 44,865 | 8,412 | 1,36,748 | 28% | 33% | 33% | 6% |
| Tamil Nadu | 34,283 | 46,318 | 41,244 | 9,269 | 1,31,115 | 26% | 35% | 31% | 7% |
| Haryana | 18,165 | 23,285 | 70,034 | 7,878 | 1,19,362 | 15% | 20% | 59% | 7% |
| Uttar Pradesh | 26,328 | 34,845 | 34,462 | 16,577 | 1,12,212 | 23% | 31% | 31% | 15% |
| Delhi | 15,156 | 17,788 | 42,706 | 1,352 | 77,002 | 20% | 23% | 55% | 2% |
| West Bengal | 19,790 | 24,085 | 17,552 | 5,465 | 66,892 | 30% | 36% | 26% | 8% |
| Telangana | 16,893 | 21,292 | 18,454 | 6,349 | 62,987 | 27% | 34% | 29% | 10% |
| Odisha | 14,677 | 18,108 | 17,957 | 10,186 | 60,928 | 24% | 30% | 29% | 17% |
| Rajasthan | 14,639 | 18,736 | 19,377 | 2,032 | 54,785 | 27% | 34% | 35% | 4% |
| Madhya Pradesh | 11,277 | 14,031 | 11,823 | 7,941 | 45,072 | 25% | 31% | 26% | 18% |
| Andhra Pradesh | 11,201 | 14,488 | 16,293 | 2,843 | 44,825 | 25% | 32% | 36% | 6% |
| Chhattisgarh | 7,498 | 9,344 | 12,776 | 7,565 | 37,183 | 20% | 25% | 34% | 20% |
| Jharkhand | 6,780 | 8,923 | 13,320 | 7,818 | 36,841 | 18% | 24% | 36% | 21% |
| Kerala | 11,763 | 14,885 | 6,375 | 85 | 33,109 | 36% | 45% | 19% | 0% |
| Punjab | 6,495 | 9,193 | 10,579 | 455 | 26,721 | 24% | 34% | 40% | 2% |
| Uttarakhand | 4,046 | 5,847 | 10,648 | 129 | 20,670 | 20% | 28% | 52% | 1% |
| Bihar | 5,431 | 9,925 | 2,774 | 2,078 | 20,208 | 27% | 49% | 14% | 10% |
| Assam | 5,118 | 6,533 | 4,346 | 1,418 | 17,415 | 29% | 38% | 25% | 8% |
| Himachal Pradesh | 1,945 | 2,709 | 5,669 | 29 | 10,352 | 19% | 26% | 55% | 0% |
| Jammu and Kashmir | 2,113 | 2,991 | 1,954 | 116 | 7,175 | 29% | 42% | 27% | 2% |
| Goa | 2,073 | 2,609 | 2,417 | 46 | 7,146 | 29% | 37% | 34% | 1% |
| Sikkim | 307 | 399 | 3,356 | 2 | 4,063 | 8% | 10% | 83% | 0% |
| Meghalaya | 529 | 646 | 1,003 | 14 | 2,192 | 24% | 29% | 46% | 1% |
| Arunachal Pradesh | 465 | 567 | 167 | 2 | 1,201 | 39% | 47% | 14% | 0% |
| Tripura | 450 | 578 | 162 | 3 | 1,193 | 38% | 48% | 14% | 0% |
| Manipur | 248 | 348 | 102 | 1 | 699 | 35% | 50% | 15% | 0% |
| Nagaland | 238 | 296 | 124 | 24 | 682 | 35% | 43% | 18% | 3% |
| Mizoram | 193 | 264 | 53 | 1 | 512 | 38% | 52% | 10% | 0% |
The GST Council
The GST Council is the key decision-making body responsible for shaping and guiding the implementation of the Goods and Services Tax in India. It was constituted as per Article 279A of the Constitution following the passage of the 122nd Constitutional Amendment Bill by Parliament and its ratification by more than 15 states. The Amendment received Presidential assent on 8 September 2016, and the Council was formally set up shortly thereafter.
The GST Council consists of the following members:
- The Union Finance Minister (Chairperson)
- The Union Minister of State in charge of Revenue or Finance
- The Minister in charge of Finance or Taxation, or any other Minister nominated by each State Government
- Any person nominated by the Governor of the State where there is a proclamation of emergency under Article 356 of the Constitution
Since its formation, the Council has held 55 meetings and played a vital role in the evolution of the GST regime. It has taken several major decisions to simplify the system, ease compliance, and support economic growth. Some of the notable decisions are:
- Introduction of e-Way Bills to monitor goods movement and reduce tax evasion. These were later integrated with e-Invoicing and return filing systems.
- Rate relief for the real estate sector, including a reduction in GST on under-construction affordable housing from 8 per cent to 1 per cent.
- Approval of e-Invoicing for B2B transactions, now mandatory for firms with an annual turnover of ₹5 crore or more.
- Promotion of green mobility through a rate cut on electric vehicles from 12 per cent to 5 per cent and GST exemption on larger electric buses.
- Launch of the QRMP scheme to ease compliance for small businesses by allowing quarterly return filing with monthly payments.
- COVID-19 relief measures, including rationalisation of GST on medical supplies and essential goods.
- Simplified GST returns, auto-populated data, and the introduction of dynamic QR codes for easier digital payments.
- Significant rate rationalisation, reducing the number of items under the highest tax slab from 227 to just 35.
- Trade facilitation measures, including formula changes for refunds and additional modes for tax payment.
- Creation of GST Appellate Tribunals to ensure quicker resolution of disputes, with the Principal Bench in New Delhi and State Benches as required.
- Amnesty scheme for appeals, giving taxpayers a chance to file delayed appeals against demand orders.
- Pilot launch of B2C e-Invoicing and phased rollout of Aadhaar-based biometric authentication for applicants.
- Clarification on GST for vouchers, stating they are neither goods nor services, and simplifying related provisions.
- Full GST exemption on gene therapy and recommendation for a legal framework for the new Invoice Management System.
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