Goods and Services Tax Day 2025

India honors Goods and Services Tax (GST) Day on July 1 every year to celebrate one of India’s most significant economic reforms. The Goods and Services Tax, effective on July 1, 2017, rolled multiple indirect taxes into one, and established a single market under one tax regime. The celebrations began in 2018 to celebrate GST’s first anniversary.

What is GST?

The Goods and Service Tax (GST) is an indirect tax based on the destination of the goods supplied and services provided. It is a comprehensive single tax that applies to the whole supply chain of goods and services, setting out input tax credit options for each level of supply.

This effectively means GST is a tax only on a value-added basis, as companies can claim credits for taxes paid on items purchased. Only the final consumer is taxed by the last seller in the supply chain. Since the GST is consumption-based, the tax is applied to the final good or service consumed in the state, and tax revenues accumulate to that state.

Top 10 States by GST Revenue (April 2025)

India’s GST collections have seen consistent growth. In April 2025, GST revenues reached an all-time high of ₹2.37 lakh crore, marking a 12.6% growth from the previous year.