Contribution of Goods and Services Tax (GST) to Indian Revenue

Abstract

The government of any country levies taxes to generate the necessary funds for development works, infrastructure (roads, bridges), education, health, defense, and social welfare. GST (Goods and Services Tax) is an integrated indirect tax system implemented in India from 1 July 2017. It was introduced with the concept of “One Nation, One Tax, One Market” to reform the indirect tax structure across the country. The major components of GST include CGST (Central Goods and Services Tax), SGST (State Goods and Services Tax), IGST (Integrated Goods and Services Tax), and UTGST (Union Territory Goods and Services Tax). A study of the period 2024 and 2025 shows a significant increase in both gross and net GST collections contributing to government revenue. Compared to November 2024, gross domestic revenue in November 2025 increased by 5.82 percent. During the same period, total import revenue increased by 12.34 percent. Overall GST revenue registered a growth of 7.39 percent. Refunds increased by 20.91 percent. Domestic net revenue increased by 3.95 percent, while net customs revenue increased by 12.00 percent. Overall gross domestic revenue showed an increase of 5.65 percent. This indicates that, compared to 2024, both gross and net GST collections in 2025 have increased substantially, thereby strengthening the contribution of GST to Indian revenue.