GST Day observed on July 1

Key facts

• GST Day is observed on July 1 to mark the anniversary of the Goods and Services Tax (GST) launched on July 1, 2017.
• The GST framework unified India's indirect tax structure by subsuming 17 taxes and 13 cesses under the vision of One Nation, One Tax.
• The system is a destination-based consumption tax featuring a dual structure comprising Central Goods and Services Tax (CGST), State Goods and Services Tax (SGST), and Integrated Goods and Services Tax (IGST).
• The Goods and Services Tax Network (GSTN) provides the digital ecosystem for online registration, return filing, and tax administration.
• The GST Council is the institution responsible for making consensus-based policy decisions and revising tax rates.
• GST 2.0 reforms introduced in 2025 established primary tax slabs of 5% and 18%, with a 40% rate on luxury and sin goods including tobacco, online gaming, lottery, aerated drinks, yachts, and private aircraft.
• Compliance measures for small businesses include raising the registration threshold from ₹20 lakh to ₹40 lakh, increasing the Composition Scheme limit to ₹1.5 crore, the Quarterly Return Monthly Payment (QRMP) Scheme, SMS-based NIL return filing, simplified registration for low-risk applicants, lower pre-deposit requirements for appeals, and relief from interest and penalties for eligible legacy tax disputes.
• Tax burdens were reduced through GST exemptions on insurance and essential medicines, and lower rates for the cement and handicrafts sectors.
• Registered GST taxpayers increased from 66.5 lakh in 2017 to 1.65 crore as of May 2026, with annual collections rising from ₹7.4 lakh crore in 2017-18 to nearly ₹22.27 lakh crore in 2025-26.