Eight Years of GST How India’s Tax Regime Has Evolved
Since its launch on 1st July 2017, the Goods and Services Tax (GST) has been a transformative shift in India’s indirect tax system. Designed to replace a complex web of state and central taxes, GST in India is now eight years old—and it has seen significant evolution in law, compliance, and administration.
In this blog, we decode how GST has changed since inception, what reforms have shaped the system, and what taxpayers need to know in 2025.
What is GST in India?
The Goods and Services Tax (GST) is a destination-based indirect tax levied on the supply of goods and services. It subsumed multiple central and state taxes such as:
- Central Excise Duty
- Service Tax
- VAT
- CST
- Entertainment Tax
- Entry Tax, and more
GST is structured into four types:
| Type | Applies To |
|---|---|
| CGST | Intra-state supply (collected by Centre) |
| SGST | Intra-state supply (collected by State) |
| IGST | Inter-state supply |
| UTGST | Supply in Union Territories |
Milestones in GST Evolution (2017–2025)
Here’s how the GST regime has evolved over the last eight years:
| Year | Key Reform or Event |
|---|---|
| 2017 | GST rollout on 1st July; multiple rate slabs introduced |
| 2018 | E-way bill introduced for movement of goods |
| 2019 | Simplified returns under discussion; Composition Scheme expanded |
| 2020 | COVID-19 relief measures, GSTR-3B made primary return |
| 2021 | Auto-populated GSTR-2B introduced for ITC reconciliation |
| 2022 | Interest on ITC availed wrongly but not utilised ruled invalid (Supreme Court) |
| 2023 | GST Appellate Tribunal proposal revived |
| 2024 | GST Amnesty Scheme under Section 128A introduced |
| 2025 | GSTAT Rules notified; multiple compliance relaxations discussed in 53rd GST Council Meeting |
Key Reforms Over 8 Years of GST in India
1. Return Filing Simplification
- Earlier: GSTR-1, GSTR-2, and GSTR-3 model (never fully implemented)
- Now: GSTR-1 and GSTR-3B with auto-fill features like GSTR-2B
- Quarterly filing for small taxpayers with turnover up to ₹5 crore
2. E-Invoicing & Digitisation
- Mandatory for businesses with turnover > ₹5 crore
- Enables real-time reporting and reduces fake invoicing
- Linked to E-way bill and GSTN database for transparency
3. Input Tax Credit (ITC) Tightening
- ITC now matched with GSTR-2B
- Fake ITC claims penalised under Rule 86A and 86B
- Auto-blocking of e-way bills for non-compliance
4. GST Appellate Tribunal (GSTAT) Setup
- Notified under Sections 109–111 of CGST Act
- GSTAT (Procedure) Rules, 2025 now in force
- Provides a proper judicial mechanism for appeal
5. Amnesty Schemes & Relief Measures
- Section 128A (introduced via Finance Act 2023)
- GSTR-9 and GSTR-10 relief for non-filers
- CBIC Circulars clarified late fee waivers and conditional benefits
Expert View: Simplification Has a Long Way to Go
“While digitisation and tribunal setup are welcome, GST still needs rate rationalisation and compliance ease for MSMEs. Unified return filing and trust-based ITC claims should be the next big leap.”
— CA Ankit Jaiswal, GST Advisor
Legal References & Government Sources
- Section 128A – GST Amnesty Scheme
- Notification No. 26/2022-CT: GSTR-9 Relaxations
- GSTAT Rules, 2025 – Notified under Section 109
- 53rd GST Council Meeting Recommendations
How GST Has Impacted Indian Businesses
- Small Businesses: Composition scheme threshold raised, but still struggling with compliance
- Exporters: Seamless IGST refund system helped liquidity
- E-commerce: TCS & registration across states remains a challenge
- Compliance Professionals: Growing demand for consultants and tech-enabled filings
Summary
Eight years since launch, GST in India has undergone major reforms like e-invoicing, ITC matching, return simplification, and tribunal setup. This blog breaks down the key changes and taxpayer impacts from 2017 to 2025.
FAQs on GST in India (Updated 2025)
Q1. What is the current GST return filing system?
GSTR-1 for outward supply and GSTR-3B for tax payment. ITC matched via GSTR-2B.
Q2. What’s new in 2025 for GST?
GST Appellate Tribunal operationalised, GSTAT Rules notified, and compliance easing proposed in 53rd Council meeting.
Q3. Are there any amnesty schemes still open?
The Section 128A-based GST Amnesty Scheme had specific deadlines. Check CBIC notifications for updates.
Final Thoughts & CTA
Eight years of GST in India have brought major progress—but also persistent pain points. As compliance laws evolve, staying updated is crucial for both professionals and businesses.
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