Latest news with #Rs22.08
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First Post
3 days ago
- Business
- First Post
Double Diwali gift coming for Indians, GST rates set to fall sharply, says PM Modi
The reforms will focus on MSMEs, seen as key to countering tariff turmoil, while also benefiting small traders Addressing the nation from the ramparts of the Red Fort on the occasion of the 79th Independence Day, Prime Minister Narendra Modi promised a 'big gift' for the country this Diwali. 'This Diwali, I am going to arrange for your grand Diwali. We are bringing next-gen GST reforms,' the Prime Minister said. The reforms will focus on MSMEs, seen as key to countering tariff turmoil, while also benefiting small traders. Global ratings agencies are praising India, and the world is showing trust in the Indian economy. STORY CONTINUES BELOW THIS AD The Goods and Services Tax (GST), introduced in 2017, is India's biggest indirect tax reform, unifying multiple central and state taxes into a single nationwide system. GST currently operates under a multi-slab rate structure — 0 per cent, 5 per cent, 12 per cent, 18 per cent and 28 per cent — with essential items like food grains largely exempt, while luxury goods and sin items attract the highest rate, along with additional cess in some cases. The system aims to simplify compliance, reduce cascading taxes, and create a more transparent business environment, though rate rationalisation has been an ongoing policy focus. GST revenues have shown robust growth and resilience. In fiscal year 2024-25, gross GST collections surged to a record Rs22.08 lakh crore, up 9.4 p[er cent year-on-year, doubling in just five years from Rs11.37 lakh crore in FY21. April 2025 delivered the highest-ever monthly haul of Rs2.37 lakh crore — with strong domestic demand and surging import duties driving the surge while May followed suit, crossing Rs2 lakh crore (Rs2.01 lakh crore), a 16.4 per cent increase YoY, led by a 25.2 per cent jump in import-related IGST. The collections remained strong in June at Rs1.85 lakh crore (+6.2 per cent YoY) and in July at Rs1.96 lakh crore (+7.5 per cent), marking the seventh consecutive month above Rs1.8 lakh crore, with April–July GST revenue up 10.7% over the previous year. These figures reflect improving tax compliance, expanding formalisation across sectors including MSMEs, and a healthy blend of domestic economic activity and cross-border trade. As Diwali approaches, the promise of next-generation GST reforms could help sustain this momentum by simplifying processes, reducing friction and improving cash flow for small businesses.
Hans India
01-07-2025
- Business
- Hans India
FY25 clocks record `22.08-trn GST mop-up
New Delhi: Gross GST collections doubled in five years to reach an all-time high of Rs22.08 lakh crore in the 2024-25 fiscal year, from Rs11.37 lakh crore in FY21, government data showed on gross goods and services tax (GST) collections touched its highest-ever level of Rs22.08 lakh crore in 2024-25, registering a 9.4 per cent growth over the previous fiscal year. The average monthly collection stood at Rs1.84 lakh crore in FY25, up from Rs 1.68 lakh crore in FY24 and Rs 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 'One-Nation, One-Tax' made tax compliance easier, reduced costs for businesses, and allowed goods to move freely across states. It brought together a wide range of indirect taxes under one umbrella by replacing levies like excise duty, service tax, VAT and others. This helped remove the cascading effect of taxes and brought consistency in the tax system across the country. '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,' a government statement on eight years of GST said. In 2024-25, GST recorded its highest-ever gross collections of Rs 22.08 lakh crore, reflecting a year-on-year growth of 9.4 per cent. In 2023-24 and 2022-23, GST collections were Rs 20.18 lakh crore and Rs 18.08 lakh crore in 2022-23. In 2021-22, total gross GST collections were Rs 11.37 lakh crore, and the average monthly collection was Rs95,000 crore. GST, which was launched on July 1, 2017, completes eight years on Monday. 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 Rs2.37 lakh crore in April 2025. In May 2025, it was at Rs2.01 lakh crore. The numbers for June will be released on Tuesday. The Deloitte report titled GST@8 described the past year as a blockbuster for GST. It credited the government's timely reforms, clear guidance to taxpayers, and steady upgrades on the GST portal as key reasons behind this success.
