GST expanded the taxpayer base and made doing business in India easier: Economist
Dr. Manoranjan Sharma, Chief Economist at Infomerics Ratings, stated on Tuesday that the Goods and Services Tax (GST) has been one of the most important changes implemented in India in the last ten years.
He claims that in addition to increasing the number of taxpayers in the nation, GST has also made doing business much simpler than it was in the past.
“India has witnessed several important structural changes over the last ten years, and GST stands out among them,” Sharma stated.
The stats make the impact very evident. With an average monthly collection of Rs 1.84 lakh crore, GST receipts in the fiscal year 2024–2025 were Rs 22.08 lakh crore, which was more than 9% more than the previous year. In comparison, Rs 11.37 lakh crore was collected in GST in FY 2020–21, according to Sharma.
He added that the government’s sporadic reforms had led to a notable increase in the number of GST-registered taxpayers.
There were around 60 lakh taxpayers when the GST was originally implemented. That figure has increased to 1.51 crore today, Sharma said IANS.
Sharma acknowledged that there were difficulties during the first phase of the GST’s introduction, but pointed out that many of the problems were resolved by prompt government actions.
“The adoption of GST has grown steadily over time, which is very good for the Indian economy,” he continued.
Sharma concurred with the results of a recent Deloitte survey that indicated 85% of companies thought the GST had improved their operations.
Businesses used to have to cope with a variety of tax rates and compliance requirements. Because of the centralization of the tax system under the ‘One Nation, One Tax‘ premise brought about by the GST, conducting business in India is now considerably simpler, Sharma said.
He added that although there has been significant progress in the last seven to eight years in the implementation of the GST, more can be done.
“We need to concentrate on streamlining the tax process, addressing taxpayer complaints, and guaranteeing quicker refunds in order to proceed more successfully,” he said.