On Tuesday, the Union government highlighted the positive impact of the Goods and Services Tax (GST) on everyday citizens, trade, and industry. According to the government, GST has effectively reduced the tax burden on the common man, minimized compliance costs, and decreased logistics expenses for businesses, while also boosting the revenues of both the Central and state governments.

Finance Minister Nirmala Sitharaman emphasized the success of GST and announced plans to extend its benefits further. “To enhance the advantages of GST, we are committed to simplifying and rationalizing the tax structure and expanding its reach to additional sectors,” she stated.

The Union Budget for 2024-25 outlines these expansion plans. Recent data shows a significant increase in GST collections, with June’s gross collection reaching Rs 1.74 lakh crore—a 7.7% rise from the previous year. This brings the total GST revenue for the first three months of the current fiscal year to Rs 5.57 lakh crore. Notably, GST collections hit a record high of Rs 1.87 lakh crore in April 2023.

Experts credit GST reforms with easing compliance and reducing tax burdens, which have spurred economic growth. The proposed tax structure rationalization, along with changes such as increased standard deductions, is expected to benefit the salaried class and boost disposable income, thereby increasing housing demand.

The GST regime, now seven years old, has significantly lowered taxes on essential goods like household appliances and mobile phones. The number of GST taxpayers grew to 1.46 crore in April 2024, up from 1.05 crore in April 2018. Additionally, compliance for small taxpayers has been eased, with the GST Council recommending the waiver of annual return filing for those with an aggregate annual turnover of up to Rs 2 crore for the fiscal year 2023-24.