GST moving India closer to ‘Viksit Bharat’ vision: Grant Thornton

As India charts its course towards a Viksit Bharat by 2047, GST remains central to this transformation, according to a report by Grant Thornton Bharat. Introduced as a structural reform in 2017, GST has since evolved into a powerful enabler of ease of doing business, transparency, and formalisation, the report said.

GST replaced a patchwork of indirect taxes with a unified system. A new report by Grant Thornton Bharat, titled “GST@8: One Nation, One Tax, Infinite Possibilities”, highlights how the reform has evolved into a robust and resilient engine of fiscal transformation.

“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,” said Riaz Thingna, Partner, Tax, Regulatory & Finance Consulting at Grant Thornton Bharat.

“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,” said Thingna.

April 2025 marked the highest-ever monthly GST collection at ₹2.36 lakh crore, a 12.6% rise over the previous peak in April 2024. The increase reflects stronger enforcement, improved taxpayer compliance, and broad-based economic recovery across manufacturing and consumption-driven states. Since its inception, GST has seen more than 1.5 crore taxpayers registered, over 2,400 crore invoices uploaded, and 161 crore returns filed, powered by a growing digital backbone that includes e-invoicing, real-time data analytics, and AI-led scrutiny systems.

The report underscores that GST is no longer just a tax reform but a foundation for a more integrated, transparent, and formalised economy. Several structural and legislative changes over the past year have contributed to this evolution. These include streamlined refund procedures, the introduction of an Invoice Management System, and the mandatory registration for Input Service Distributors (ISD) beginning April 2025. The Finance Acts of 2024 and 2025 also expanded the scope of ISD provisions to include inter-state reverse charge transactions, a move seen as a step toward greater input tax credit transparency.

While GST has reached several milestones, the report notes that critical challenges remain. Issues such as the taxability of online gaming, secondment arrangements, intermediary services, and development rights are under legal scrutiny and could have wide-ranging implications. The long-awaited operationalisation of the GST Appellate Tribunal is expected to reduce litigation backlogs and ensure faster dispute resolution.

As the government considers the next phase of reforms, including rate rationalisation, the inclusion of petroleum products under GST, and clarity on digital assets, the report affirms that GST will play a central role in India’s journey toward becoming a developed economy by 2047. With record collections, increased digitisation, and a maturing legal framework, GST continues to transform from a bold reform into a key enabler of India’s growth story.