Institutional Evolution and Performance of India’s GST System: Evidence from Revenue Trends, Digital Compliance Frameworks, and Reform Initiatives

The Goods and Services Tax (GST) system brought together seventeen types of indirect taxes imposed on purchase or sale of goods and services, and came into effect on July 1, 2017. The objective of the GST is to establish uniformity in the tax system for the supply of goods and services across India. Initially, GST was introduced in 2014 as the 122nd Amendment Bill. The legislation proceeded through extensive parliamentary scrutiny and formal approval by both Houses. After that, it was followed by ratification by over fifteen states of India, and then it culminated in the President’s assent in September 2016. The 101st Constitutional Amendment Act, 2016 established the GST Council and conferred concurrent legislative authority upon Parliament and the State Legislatures to enact and administer GST laws. This paper reviews GST’s progress and achievement through policy and performance. To achieve the effective outcome of the study, it adopts a descriptive and analytical research methodology. To analyze the situation, the secondary data were collected from official reports, institutional disclosures, and working papers to evaluate GST’s policy performance and outcomes. In the present context, GST revenues have slowly increased alongside a broader taxpayer base. As the findings of the paper show, the GST system relies mostly on digital compliance tools such as e-way bills and e-invoicing, which have improved transparency and strengthened enforcement. The paper also examines the role of the GST Council and recent reform measures aimed at simplifying tax structures and easing compliance for businesses and consumers. Finally, the paper highlights continuing challenges—classification disputes, input-tax-credit frictions, and uneven State GST performance after the end of compensation—and offers a focused agenda for strengthening GST outcomes in the coming years.