Collections from Goods & Services Tax (GST) nearly doubled in five years between FY21 and FY25 to over ₹22 lakh crore, said the Finance Ministry on Monday to mark eight years of GST. This is all time high annual collection.

“In FY25, GST recorded its highest-ever gross collection of ₹22.08 lakh crore, reflecting a year-on-year growth of 9.4 per cent,” said the Ministry.  The collection was ₹11.37 lakh crore during FY21. The average monthly collection stood at ₹1.84 lakh crore in FY25, up from ₹1.68 lakh crore in FY24 and ₹1.51 lakh crore in FY22. In eight years, the number of registered taxpayers under GST has risen from 65 lakh in 2017 to over 1.51 crore.

It may be noted that July 1 is remembered as GST day when the tax system was introduced in 2017. “Since its rollout, the goods and services tax has shown strong growth in revenue collection and tax base expansion. It has steadily strengthened India’s fiscal position and made indirect taxation more efficient and transparent,” the statement said.

GST subsumed about 17 local taxes and 13 cesses into a five-tier structure, simplifying the tax regime. Monthly GST collection had touched a record high of ₹2.37 lakh crore in April 2025. In May 2025, it was at ₹2.01 lakh crore. According to Mahesh Jaising, Partner with Deloitte India, the consolidation of multiple indirect taxes into a single unified system has simplified the tax structure, making it easier for businesses to understand and adhere to their obligations. This simplification has also helped in broadening the tax base, bringing previously unregistered entities into the formal economy.

“This has led to a consistent rise in tax revenues over the years, even amid economic fluctuations. Monthly GST collections have become a reliable indicator of economic activity, reflecting both improved compliance and robust consumption patterns,” he said.

Call for simplification

Meanwhile, various agencies have called for more simplification of the GST regime. A PwC India report submitted that GST Council, comprising finance ministers from the Centre and States, should simplify compliance, reduce tax slabs to three, and broaden the base by bringing petroleum products under GST,

“GST in India now stands at a critical juncture where aligning with global trade dynamics is essential. The evolving landscape of international trade, coupled with the growing need to attract investments in the manufacturing and global capability centre (GCC) sectors, calls for a GST framework that is agile, investor-friendly, and globally competitive,” the report said.

Currently, GST is a four-tier tax structure with slabs at 5, 12, 18 and 28 per cent. Luxury and demerit goods are taxed at the highest bracket of 28 per cent, while packed food and essential items are at the lowest 5 per cent slab “A transition from 4-tier to a 3-tier rate structure would reduce interpretational disputes, improve tax certainty and simplify compliance,” PwC said.

It has also made a case for levying GST on petroleum products, starting with Aviation Turbine Fuel (ATF), to remove the cascading effect and cash flow problem of the industry.

Published on June 30, 2025