1.India's GST Reforms 2017-2025 (Indirect Tax Reform)

What & Where
Tax: Destination-based Goods and Services Tax, nationwide indirect levy replacing excise, VAT, service tax etc
Structure: Dual collection CGST SGST plus IGST for interstate supplies, guided by Article 279A GST Council
Timeline: Rolled out 1 Jul 2017, next-generation reforms slated by Diwali 2025
Quick Facts for MCQs
Legal & Policy
- Amendment: 101st Constitutional Amendment inserted Art 279A, enabled concurrent taxation by Centre and states
- Council: GST Council decisions by 75% weighted vote, embody cooperative federalism
- Reform2025: Government targets slab rationalisation law and rules by Diwali 2025
Economic Angle
- Revenue: Collections average ₹1.84 lakh crore per month FY25, indicating buoyant consumption
- RateCut: Over 200 items shifted to lower slabs 2017-19, FMCG and restaurants prominent
- TaxBase: Petroleum and alcohol exclusion continues cascading, limits buoyancy
Compliance & Tech
- Digitisation: Mandatory e-way bill, e-invoicing, analytics curbed fake billing and boosted matching
- MSME: Multiple returns, refund delays, classification disputes still burden small firms
- NextStep: AI-driven monitoring planned for further evasion control
State Finance
- Compensation: 14% assured growth ended Jun 2022, creating fiscal gaps for several states
- Demand: States seek fresh stabilisation fund before accepting slab cuts
- Equity: Consumption-based share benefits richer buyer states, fuels inter-state debate
Key Data Points
| Feature | Data-Point |
|---|---|
| Constitutional amendment | 101st |
| Launch date | 1 July 2017 |
| Governing article | 279A |
| Initial slabs | 0.25 % 3 % 5 % 12 % 18 % 28 % + cess |
| Proposed slabs 2025 | Special <1 % 5 % 18 % 40 % |
| Compensation window | 2017-18 to Jun 2022 |
| Avg monthly revenue FY25 | ₹1.84 lakh crore |
| Tax structure | CGST + SGST + IGST |
| Slab reform body | Group of Ministers 2023 |
Related UPSC Prelims PYQs
Which one of the following statements regarding GST is not correct?
वस्तु एवं सेवा कर (Goods and Services Tax/GST) के क्रियान्वयन हेतु निम्नलिखित संभावित लाभ क्या है/हैं ?




