Next Generation GST Reforms: In the meeting of the GST Council that began yesterday, major reforms in the Next Generation GST have brought relief to everyone. Nirmala Sitharaman has given the gift of relief in GST just before Navratri. Now the two slabs of GST will be 5 percent and 18 percent. While a special slab of 40 percent will be applicable for harmful and super luxury items. GST was implemented in 2017 by removing all types of taxes in the country. The government's income through GST collection is continuously increasing on an annual basis. The government's income has increased three times in the last eight years. However, the new reforms are likely to cause damage to the government's treasury.
Government revenue increased every year
Talking about the government's revenue through GST, it has increased significantly every year since its implementation on July 1, 2017. GST collection broke all records in the year 2025. If we look at the highest GST collection figures so far, then in April, the highest income of Rs. 2.37 lakh crore was earned through GST. From Rs. 11.37 lakh crore in 2021-22 to Rs. 22.08 lakh crore in 2024-25, GST collection has doubled in the last five years.
Demand for compensation for loss in revenue
The government is expected to lose about Rs. 40,000 crore annually due to the reforms in GST. Since the Next Generation GST will have a significant impact on the government's revenue, the government has taken steps to compensate it. The Fitment Committee of the GST Secretariat officials has prepared drafts on the losses to the government due to the reforms in GST. The opposition had demanded a plan to compensate for the losses. Some opposition states have proposed an increase in cess to compensate for this loss. But the Center has not agreed.
Many changes in GST since 2017
Considered as the country's historic tax reform, GST was implemented on July 1, 2017. The government implemented GST for a single tax system by eliminating various old indirect taxes. Which is reviewed from time to time. And many amendments have been made. For this, the GST Council was formed. In which the Union Finance Minister, Minister of State (Revenue), and the Finance Ministers of the states have been included. Earlier, GST had four slabs of 5 percent, 12 percent, 18 percent and 28 percent. Which was reduced yesterday to two slabs of 5 percent and 18 percent.
