GST Revenue Growth and Compliance Measures (2017-2025)

India’s GST collection has shown a steady increase since its implementation in 2017, reflecting its role in enhancing fiscal health and formalizing the economy. The gross GST collection rose from ₹7.41 lakh crore in 2017-18 to ₹20.18 lakh crore in 2023-24. This growth is attributed to streamlining tax credits, reducing cascading taxes, and fostering a unified national market. Maharashtra, Karnataka, and Gujarat are among the top contributors to GST revenue, driven by key sectors like manufacturing and services. The government has implemented various measures to support underperforming states, including targeted reforms and sector-specific interventions. Efforts to curb tax evasion include legal provisions under the CGST Act, data analytics, and enforcement actions, along with technical upgrades to the GST portal for seamless compliance. Challenges such as complexity, ITC mismatches, and compliance burdens persist but are being addressed through structural changes, e-invoicing mandates, and technological integration. These steps have significantly boosted GST compliance and revenue while supporting taxpayers through extended filing periods and grievance redressal mechanisms.

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE

LOK SABHA UNSTARRED QUESTION NO. 1725
ANSWERED ON MONDAY, THE 10^th March, 2025 / PHALGUNA 19, 1946 (Saka)

GST Collection and GST Revenue

1725. SHRI ADHIKARI DEEPAK DEV:
DR. D. PURANDESWARI:

Will the Minister of FINANCE be pleased to state:

(a) the details of GST collected during the last three years, State/year-wise;

(b) the details of growth in Goods and Services Tax (GST) revenue collection since its implementation and the manner in which it has contributed to strengthening the country’s fiscal health, year-wise;

(c) the details of the States with highest growth in GST collection and the measures taken by the Government to support underperforming States;

(d) the details of the key sectors contributing significantly to GST revenue and the way the Government is ensuring their sustained growth;

(e) the details of the measures taken by the Government to curb tax evasion ensuring GST regime compliance and the steps taken to resolve technical issues faced by taxpayers on the GST portal to ensure seamless compliance; and

(f) whether the Government have encountered challenges in achieving higher GST collection, if so, the details of the challenges being faced and the steps taken to address the challenges?

ANSWER

THE MINISTER OF STATE IN MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)

(a): The details of gross Goods and Services Tax (GST) collection on all supplies (Domestic + Imports) during the last three financial years are given as per Annexure A.

(b): The details of growth of GST collection since implementation is as per the table below:

* 9 months only as GST implemented w.e.f. 1st July, 2017
$ Y-o-Y growth not comparable

GST, true to its motto of One Nation, One Tax has contributed to strengthening of the country’s fiscal health. It has catalysed the formalization of the economy as reflected in the increase in taxpayer base and taxable revenue base. It has delivered several benefits to the businesses such as the removal of cascading taxes, streamlined credit flows, reduced logistical time and cost, and the creation of a unified national market.

(c): The details of the State-wise growth in GST collection in the 11 months upto February for the FY 2023-24 in comparison to FY 2024-25 are given in Annexure B.

The Government has taken various measures for reforms in GST, as detailed in reply to part (e) below. In addition, the GST Council has reconstituted a Group of Ministers (GoM) of States to suggest suitable measures/Policy intervention for course correction for revenue augmentation particularly for the States suffering high revenue shortfall.

(d): Estimated sector-wise information on the available data was presented before the GST Council held in December 2024. In order to get more accurate analysis of sectoral revenue and for other GST data, the GST Council has re-constituted a Group of Ministers (GoM) of States which, inter-alia, would review the sector-wise analysis and identify and recommend sectors specific issues that need policy intervention or enforcement measures.

(e): As a measure to track down and take action against masterminds, there are sufficiently deterring legal provisions in the CGST Act which are as under:

i. Punishment for tax evaded or the amount of ITC wrongly availed or utilised or the amount of refund wrongly taken;

ii. Suspension / Cancellation of registration of taxpayers involved in fake ITC cases;

iii. Blocking of ITC in electronic credit ledger;

iv. Provisional attachment of property / bank accounts, etc. for the recovery of Government dues;

Moreover, regular action is taken to detect fake firms through data analytics and other intelligence by the Central and State authorities. Till now, 2 National Conference of Enforcement Chiefs of State and Central GST Formations have been held in respect of activities being undertaken by the enforcement formations and the importance of maintaining ease of doing business.

Further, the Government, on the recommendations of the GST Council, has taken several reforms in GST including measures to resolve technical issues faced by taxpayers on the GST portal to ensure seamless compliance. These measures have improved the GST compliance and increased the GST collection. These inter-alia include: –

(i) Structural changes like calibration of GST rates for correcting inverted duty structure and pruning of exemptions;

(ii) Measures for improving tax compliance such as mandating e-way bill, ITC matching, mandating e-invoice, deployment of artificial intelligence and machine-based analytics, Aadhaar authentication for registration, calibrated action on non-filers, stop filers, targeted assessment-based action on risky tax payer, integration of e-way bill with fast tag etc.

(iii) System based analytical tools and system generated red flag reports are being shared with Central as well as State Tax authorities to take action against tax evaders.

(iv) Moreover, to deal with technical issues, GSTN has taken the following measures: –

a) Call Centre and IVR based system have been set up to resolve Taxpayers complaints.

b) Where a large section of taxpayers are affected, GSTN after examination and investigation of the grievances, share the identified issue with the IT Grievance Redressal Committee along with suggested solution for redressal of the problem.

c) Based on the decisions and directions of the IT Grievance Redressal committee, GSTN implement the decision to resolve the technical issue.

d) Return filling period is also extended, wherever required.

(f): Yes, Sir. The Government have encountered various challenges in achieving higher GST collection. Some of the challenges were complexity and compliance burden; technology and infrastructure readiness; ITC verification; multiple registrations across States; etc. However, with time, the Government on the recommendations of GST Council has taken several reforms in GST. These measures have improved the GST compliance and increased the GST collection, as detailed in part (e) above.

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Annexure A

State/UT-wise Financial Year-wise Gross GST Collection

Rs in Crores

Annexure B

Growth of Gross GST revenue (domestic) collected from the States in 11 months of FY 2024-25

Rs in Crores