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GST Day 2025: The introduction of the GST simplified the taxation system for the government by reducing cascading taxes and compliance burdens.
GST Day is celebrated on July 1. (AI-generated image)
GST Day 2025: Celebrated by the Indian government on July 1 annually, the GST Day marks the eighth anniversary of the formal rolling of the Goods and Services Tax (GST). One of the country’s biggest tax reforms, the introduction of the GST helped unify India’s indirect tax system into one streamlined tax structure. The day of the launch of GST is used to promote awareness and compliance with the GST framework.
GST Day 2025: History And Significance
The GST was formally introduced by PM Narendra Modi-led Indian government and officially implemented on July 1, 2017. It was first proposed by former PM Atal Bihari Vajpayee during his term in 2000.
Vajpayee’s government formed the committee that designed the initial framework to roll out the unified indirect tax reform system. But the system had to wait another 16 years to be officially passed with the approval of The Constitution Amendment Bill for GST.
On July 1, 2018, the first anniversary of the GST Day was celebrated, recalled as the historic occasion when India’s indirect tax system was rejuvenated into a single and streamlined structure. The GST Day recognises the efforts of the policymakers and tax professionals involved in establishing the unified indirect tax structure that replaced the old system.
GST Day 2025: Key Facts
The introduction of the GST officially established a unified system for indirect taxes. Earlier, the central government used to impose multiple taxes such as VAT, service tax, excise duty and octroi.
The tax structure includes the CGST (central tax), SGST/UTGST (state tax/Union Territory tax) for intra-state supplies and IGST (integrated GST) levied for inter-state supply transactions.
Under the Indian GST system, the tax rates range from 5%, 12%, 18% and 28%. But there are also nil-rated goods and services while special rates are levied on high-value items like gold and diamonds.
The Indian government announced film legend Amitabh Bachchan as the brand ambassador to promote GST awareness among civilians.
GST Day 2025: Impact On Indian Economy
The introduction of the GST simplified the taxation system for the government by reducing cascading taxes and compliance burdens. By creating a unified tax structure and national market, GST played a role in boosting inter-state trade and easing business activities.
It also helped increase the transparency of the tax system through digital invoicing and electronic bills while improving the overall tax collection method for the authorities. Monthly GST collections in March 2024 stood at ₹1.78 lakh crore, which was a rise of 11.5% from the previous year.
GST Day 2025: Quotes
- “Great Step by Team India, Great Step towards Transformation, Great Step towards Transparency—this is GST.” – PM Narendra Modi
- “GST is a tribute to the maturity and wisdom of India’s democracy.” – Pranab Mukherjee
- “GST is an example of cooperative federalism.” – PM Narendra Modi
- “GST has been a game-changer for India, bringing in efficiency, transparency, and ease of doing business.” – Ratan Tata
- “GST symbolises India’s leap towards a more organised and formalised economy, ensuring greater compliance and revenue.” – Arvind Subramanian.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
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