GST Marks 8 Years: A 'Landmark Reform' Boosting India's Economy
India's Goods and Services Tax (GST) celebrated its eighth anniversary on July 1, 2025. Since its inception in 2017, GST has grown to cover over 1.45 crore active taxpayers and generates around 13 crore e-way bills monthly. Prime Minister Narendra Modi marked the occasion, hailing GST as a 'landmark reform' that has significantly boosted India's economic growth and business environment.
GST was introduced to replace a complex web of over a dozen central and state taxes with a single, unified tax regime. PM Modi has praised GST for its role in improving the Ease of Doing Business, particularly for small and medium enterprises. Indeed, India's ranking on the World Bank's Ease of Doing Business index jumped from 142nd in 2014 to 63rd in 2019, partly due to GST reforms.
However, the impact of GST on foreign companies operating in India remains a topic of debate. U.S. entrepreneur Ryan Petersen, CEO of Flexport, has criticized GST, stating that his entity in India has to file more 'useless paperwork' than all other countries combined. Some argue that regulatory paperwork remains a challenge for foreign companies. Persistent issues with GST filing and varying state-level rules continue to affect foreign and digital-first companies, although the exact number of affected states is not specified.
Despite these challenges, GST has undeniably transformed India's economic landscape. It has become a 'powerful engine for economic growth', as PM Modi puts it, and has enabled cooperative federalism. As GST continues to evolve, addressing the concerns of foreign businesses will be crucial for India to fully harness the benefits of this landmark reform.
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