Tax base and tax revenues have gone up significantly since the launch of GST in 2017, said a top official from the Central Board of Indirect tax and Customs (CBIC) while also stating that there is scope of further reforms in GST. “Since the introduction of GST in 2017-18, we have seen more than 200% growth in the revenues and more than 100% growth in the number of taxpayers who have been registered in the GST,” said Shashank Priya, Special Secretary and Member (GST), CBIC, at the Assocham National Conclave on GST 2.0 in New Delhi today.

“Reform is an ongoing journey, and there is definitely room for improvement. Our appetite for reform is still there, and we will continue to work further on how to make this GST experience better for all the stakeholders,” Shashank Priya said.

Highlighting some key reforms in the GST, Shashank Priya said, “From 1st November 2025, applicants declaring input tax credit passthrough in a month not exceeding ₹2.5 lakh will be granted automated GST registration within three working days. And from October, 90% refund for exports will be given up front. The GST council has approved a broad framework to facilitate access of MSMEs to a larger market through e-commerce.”

“GST cut is more than just a tax cut; it is a strategic move to inject new life into the economy. With the current rationalisation of rates, the effective weighted average GST rate is expected to come down to 9.5%. With reduced rate of GST, big ticket items like car, housing loan and household appliances will see greater demand, which will translate into a higher loan book of banks,” said Pankaj Agarwal, Deputy General Manager, State Bank of India.

“This GST reform will also accelerate digital financing, simplify tax compliance and make it easier for businesses of all sizes to operate making it a win-win situation for all the stakeholders of GST. While government estimates the net fiscal impact of 48,000 crores on an annualised basis, based on trend growth, we expect a minimal 3,700 crore revenue loss in GST," Agarwal added. 

Pratik Jain, Chairman, National Council on Indirect Taxes, ASSOCHAM, said Prime Minister Narendra Modi announced the impact of the GST 2.0 reforms is close to 2 lakh crores which is almost 10% of the total GST collection in a year.

“The reform apart from the fiscal stimulus, provides a huge boost to the exporter community as services to clients abroad will not be subject to GST in accordance with the legislative amendments in respect to intermediary, where the place of supply rules are proposed to be changed and it is now going to be considered as export,” Jain added.