India’s GST Collections Hit Record ₹22.08 Lakh Crore in FY25

India’s Goods and Services Tax (GST) regime, implemented in 2017, has shown remarkable growth in revenue collections. In a landmark achievement, gross GST collections reached a record high of ₹22.08 lakh crore in the financial year 2024–25 (FY25), doubling from ₹11.37 lakh crore in FY21. This milestone not only highlights India’s economic recovery and robust consumption trends but also reflects the efficiency and maturity of the unified tax system.

Why in News?

India has achieved its highest-ever annual GST revenue in FY25, marking eight years since the GST rollout. The consistent rise in monthly and yearly GST collections demonstrates the system’s growing effectiveness and transparency. As the GST regime completes eight years on July 1, 2025, this achievement underscores its pivotal role in strengthening India’s fiscal framework.

GST Collection Milestones

  • FY25 Gross Collection: ₹22.08 lakh crore — highest ever.
  • Growth over FY24: 9.4% YoY (₹20.18 lakh crore in FY24).
  • Growth over FY21: Doubled from ₹11.37 lakh crore.
  • Average Monthly Collection: ₹1.84 lakh crore in FY25.
  • April 2025: Highest-ever monthly GST of ₹2.37 lakh crore.
  • May 2025: ₹2.01 lakh crore.
  • June 2025 data: To be released soon.

Rise in Taxpayer Base

  • 2017: 65 lakh GST-registered taxpayers.
  • 2025: Over 1.51 crore taxpayers.

Systemic Impact

GST replaced,

  • 17 central & state taxes.
  • 13 cesses.
  • Unified into a 5-tier tax structure, simplifying compliance.
  • Boosted transparency, compliance, and tax base expansion.

Background & Significance

  • GST Launch: July 1, 2017, hailed as the biggest tax reform in independent India.
  • Aimed to streamline indirect taxation, reduce cascading effects, and increase ease of doing business.

Significance in FY25

  • Reflects economic resilience, post-pandemic recovery.
  • Demonstrates increased formalisation of the economy.
  • Plays a crucial role in strengthening Centre and State revenues.
Summary/Static Details
Why in the news? India’s GST Collections Hit Record ₹22.08 Lakh Crore in FY25
GST Collection in FY25 ₹22.08 lakh crore (record high)
YoY Growth from FY24 9.4%
Monthly Average (FY25) ₹1.84 lakh crore
Registered Taxpayers (2025) Over 1.51 crore
Tax Structure 5-tier unified indirect tax system
Taxes Replaced 17 taxes & 13 cesses

Shivam

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