Eight years since its launch, the Goods and Services Tax (GST) has proven itself to be one of the most transformative reforms in India’s fiscal history. Introduced on 1 July 2017, GST unified India’s fragmented indirect tax ecosystem into a single, destination-based tax structure. Initially met with uncertainty, GST has since evolved through robust policy interventions, growing in resilience and adaptability. GST@8 has now catalysed a paradigm shift—not just in tax administration but also in how businesses operate across states.

With over 55 GST Council meetings, 1,200+ notifications, and rising contributions to the tax pool, GST is now more than a tax—it is a pillar of India’s economic integration. The reforms under the GST policy evolution have streamlined compliance, stabilised revenue flows, and encouraged manufacturing across the country, marking a quiet but powerful shift in the nation’s economic fabric.

GST@8 in numbers

1.

In April 2025, GST collections reached an all-time high of INR 2.36 lakh crore—up 12.6% from the previous year, signalling strong economic recovery.

2.

GST as a percentage of GDP has risen steadily, reflecting robust tax buoyancy and enhanced integration across states.

3.

The system has seen consistent growth in taxpayer base, with over 1.52 crore registered taxpayers and 161 crore returns filed till May 2025.

4.

Technology adoption has been massive, with 2,431 crore invoices uploaded and 619 crore e-way bills generated on the GSTN platform.

5.

GST’s contribution to India’s net tax collections has climbed from 23% in FY18 to over 27.5% in recent years.

6.

High-performing states like Maharashtra, Gujarat, Karnataka, and Uttar Pradesh continue to anchor national GST performance.

Riaz Thingna
When GST was first rolled out, many of us wondered whether a single tax can truly unify such a diverse economy? Eight years in, the answer is becoming clear. We have seen sustained efforts by the government to simplify compliances and boost ease of doing business. Today, GST collections are touching record highs, but beyond the numbers, it is the quiet shift in India’s economic fabric that matters more. We are seeing manufacturing spread more evenly across states, tax revenues becoming more predictable and a stronger sense of integration in the market. GST contribution to the overall tax pool is rising consistently, reflecting its maturity. It feels less like just a tax reform now and more like a foundation that is helping shape a new, more balanced India.
Riaz Thingna Partner, Tax, Regulatory & Finance Consulting, Grant Thornton Bharat

Key GST developments

GST@8 has matured significantly through digital, legal, and structural advancements. Notable GST developments include e-invoicing, the Invoice Management System (IMS), and simplified return filing—all aimed at reducing evasion and increasing compliance. The Amnesty Scheme has also emerged as a balanced move to encourage taxpayer participation while tightening enforcement.

On the legislative front, the Finance Act 2024 introduced Section 74A, standardising adjudication timelines for fraud and non-fraud cases. The launch of the GST Appellate Tribunal (GSTAT), with multiple state benches and a centralised structure, marks a step towards reducing litigation and improving access to justice.

A critical change involves making the Input Service Distributor (ISD) registration mandatory from April 2025. This mandates formal ITC distribution for inter-entity services, bringing clarity and uniformity in compliance practices.

Furthermore, multiple clarifications have been issued, including on ITC for demo vehicles, GST applicability on vouchers and loans, and the tax treatment of extended warranties. These developments reflect an increasing emphasis on transparency, automation, and credit alignment under GST.

Krishan Arora
As GST completes eight years, it stands as a testament to India’s drive toward a unified, transparent, and tech-enabled indirect tax regime. Initially a bold reform, GST has steadily matured through structural and digital advancements such as e-invoicing, Invoice Matching System (IMS), and automated return filing—all of which have enhanced compliance, curbed evasion, and boosted monthly collections to over ₹1.5 lakh crore. The amnesty scheme reflects a balanced strategy of enforcement and taxpayer facilitation, while retrospective amendments like that to Section 17(5) highlight the evolving credit framework and the need for clarity. The GST Council, fostering cooperative federalism, continues to steer reforms through consensus. Future-facing proposals like mandatory ISD registration for inter-entity services reveal increasing credit sophistication. With digitalisation and analytics reshaping compliance, the system is poised for greater legal certainty and ease of doing business—moving India closer to its vision of a Vibrant Vikshit Bharat.
Krishan Arora Partner and India Investment Advisory Leader, Grant Thornton Bharat

Judicial pulse

Over the past year, the judiciary has played a key role in clarifying contentious GST issues and has helped shape GST policy evolution. The Supreme Court’s ruling in the Safari Retreats case upheld Section 17(5)(d) but allowed ITC on 'plant' based on functionality, shaping future interpretation of construction-related credits. A retrospective amendment followed, aligning the statute with judicial observations.

Further relief came when the SC allowed the use of ITC for mandatory pre-deposits in appeals and upheld rectification of GST returns beyond statutory deadlines, strengthening procedural fairness for taxpayers.

 

The court also validated GST’s arrest provisions under the CGST Act, affirming that enforcement powers fall within legislative competence. Meanwhile, the Delhi HC held telecom towers as movable assets eligible for ITC, while the Gujarat HC exempted leasehold right assignments from GST.

Lastly, the Kerala HC struck down the imposition of GST on club-to-member services, reinforcing the principle of mutuality. With the operationalisation of GSTAT underway, these rulings underscore the evolving, yet maturing, judicial framework of GST.

Manoj Mishra
Even after eight years, litigation continues to shape the GST landscape in a big way. The last year alone saw the Supreme Court clarifying several long-standing issues. From allowing the use of ITC for mandatory pre-deposits to permitting rectification of returns beyond statutory timelines, the apex court have played a strong role in easing compliance and upholding fairness. At the same time, landmark decisions like the Safari Retreats case and the upholding of arrest provisions have reminded us how dynamic and layered GST jurisprudence has become. Issues around taxability of online gaming, secondment classification and the taxability of development rights are actively being examined before the Supreme court and their outcomes will likely set critical precedents. There has also been welcome relief through High Court rulings—such as the Delhi HC allowing ITC on telecom towers and the Gujarat HC holding that assignment of leasehold rights is not a taxable supply. With the long-awaited GST Appellate Tribunal now notified, its efficient functioning will be central to reducing litigation. As litigation evolves, the need for clarity, consistency and timely dispute resolution is more important than ever.
Manoj Mishra Partner and Tax Controversy Management Leader, Grant Thornton Bharat

Trends to watch out for

  • Online gaming taxation: A 28% GST now applies to full player deposits, with SC hearings underway to resolve legal and constitutional challenges.
  • Secondment services: The SC and HCs continue to assess when employee secondments qualify as taxable manpower supply.
  • Development rights: The taxability of the Transfer of Development Rights (TDR) under joint development agreements is now before the SC.
  • Limitation extensions: Notifications under Section 168A extending time limits are being legally challenged, with mixed HC verdicts.
  • Evolving definitions: Courts are refining concepts like ‘supply’, ‘services’, and ‘output tax’, which will shape compliance and litigation ahead.

Missing pieces in GST puzzle

Potential merger of the 12% and 18% slabs to simplify the tax structure.

Bringing petrol, diesel, ATF, and natural gas under GST remains a long-pending reform.

Delays in tribunal functioning continue to hinder the speedy resolution of appeals.

A lack of clarity in classification continues to create confusion for cross-border service providers.

Section 17(5) amendments and the ‘own account’ clause are ripe for judicial review.

The status and rate of GST on digital assets remain undefined, causing compliance uncertainty.

GST sector-specific insights

Across sectors, specific GST proposals aim to address long-standing challenges. In healthcare, a rate reduction on equipment is recommended. In banking, clarity is sought on co-lending arrangements between NBFCs and banks.

Real estate players have called for ITC on the construction of immovable property, while the insurance sector proposes reducing GST on premiums to 5%. Renewable energy projects seek revised valuation norms and clarity on EV infrastructure.

Sectors like hospitality, crypto, and textiles urge tax alignment and refunds to remain globally competitive, showing the system’s readiness for sector-wise fine-tuning.

GST awards: Eight years, endless revolution

Most taxpayer-friendly move

Amnesty scheme under Section 128A for waiver of interest and penalties.

Trailblazer in compliance

Launch of the Invoice Management System (IMS) for ITC reconciliation.

Litigation hotspot

Ongoing disputes around online gaming valuation and classification.

Dark horse reform

Section 74A standardising fraud and non-fraud adjudications.

Most controversial judgement

SC verdict in Safari Retreats on ITC for construction activities.

Conclusion

As India journeys toward becoming a developed economy by 2047, GST will remain central to this transition. GST is now deeply embedded in the country’s fiscal architecture, from record-breaking revenue milestones to the rollout of AI-based tools. The foundation is strong, while challenges remain, including slab rationalisation and tax base expansion. The resilience shown by both taxpayers and administrators reaffirms that GST is more than a reform—it’s a dynamic engine for growth, compliance, and inclusion in India’s economic future.

GST@8: One nation, one tax, infinite possibilities

GST@8: One nation, one tax, infinite possibilities