Home India Ministry of Finance GST has transformed India's indirect tax regime, strengthene...
Date: 2026-07-01 Category: Press Release State: Union Government Country: India

GST has transformed India's indirect tax regime, strengthened cooperative federalism and enhanced tax compliance:Maharashtra CM Shri Devendra Fadnavis

Issued by Ministry of Finance · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** The 9th GST Day was celebrated on July 1, 2026, in Mumbai to commemorate the implementation of India's unified tax regime. Chief Minister Devendra Fadnavis highlighted Maharashtra’s record GST revenue of ₹1.87 lakh crore for FY 2025-26 and the transition toward "GST 2.0" reforms. The event focused on the integration of advanced technologies like AI to enhance tax compliance and the ongoing rationalization of tax slabs to improve the Ease of Doing Business. **Key Points / Main Content** * **Revenue and Economic Performance** * Maharashtra recorded approximately ₹1.87 lakh crore in GST revenue during the last financial year. * The state remains the highest GST contributor in India, with collections exceeding the combined totals of Karnataka and Gujarat. * Growth is attributed to a resilient economy, improved voluntary compliance, and data-driven administration. * **Technological Integration and Innovation** * The GST Network (GSTN) is recognized as a primary driver of successful implementation across the country. * Future tax enforcement and administration will increasingly utilize Artificial Intelligence (AI) and digital intelligence. * Emphasis is being placed on faster, technology-driven refund processing for taxpayers. * **GST 2.0 and Structural Reforms** * Ongoing reforms focus on the rationalization of tax slabs and structural changes to benefit businesses. * The goal of GST 2.0 is to simplify compliance requirements and enhance the Ease of Doing Business (EoDB). * The GST Council continues to serve as a model for cooperative federalism through consensus-based policymaking. * **Compliance and Administration** * Current taxpayer compliance levels have reached nearly 90%. * The transition from multiple indirect taxes (like VAT and octroi) to GST has reduced the compliance burden on honest businesses. * Departmental efforts are focused on making tax administration more efficient, transparent, and taxpayer-friendly. **Impact Analysis** **Businesses and Taxpayers** **Impact** Businesses benefit from a unified national market, reduced cascading effects of taxes, and a more level playing field. Structural changes in GST 2.0 aim to simplify filing and speed up refund cycles. **Action Required** Taxpayers must continue to maintain high compliance standards and prepare to adapt to upcoming structural changes and rationalized tax slabs under GST 2.0. **Central and State GST Departments** **Impact** Officers are tasked with transitioning to a technology-driven enforcement model. Their efforts in revenue mobilization directly support infrastructure development and social welfare. **Action Required** Departmental personnel must adopt and implement modern technologies, including AI and digital intelligence, to ensure smoother tax enforcement and faster processing of services. **State Governments** **Impact** States benefit from strengthened cooperative federalism and, historically, a guaranteed 14% year-on-year revenue growth during the initial rollout phase. **Action Required** State authorities must continue to collaborate with the Centre through the GST Council to achieve consensus on further tax rationalization and administrative reforms.

Key Entities Referenced

Goods and Services Tax (GST): The unified indirect tax reform implemented to replace multiple taxes like VAT and octroi with a 'One Nation, One Tax, One Market' system. GST Council: A key constitutional body for consensus-based decision-making between the Centre and States regarding the GST framework. GST Network (GSTN): The technological platform and IT infrastructure responsible for the implementation and management of GST across India. GST 2.0: A secondary phase of tax reforms focused on structural changes, rationalisation of tax slabs, and simplifying compliance. Maharashtra: The highest GST-contributing state in India, central to the document's reporting on revenue growth and tax compliance success.
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Ministry of Finance GST has transformed India's indirect tax regime, strengthened cooperative federalism and enhanced tax compliance:Maharashtra CM Shri Devendra Fadnavis CGST Mumbai Zone and SGST, Maharashtra together celebrate 9th GST Day Maharashtra State records robust GST revenue growth during FY 2025-26 प्रव तथ: 01 JUL 2026 6:08PM by PIB Mumbai Mumbai, 1 July 2026 The 9th GST Day 2026, commemorating the implementation of the historic indirect tax reform that transformed India into “One Nation, One Tax, One Market”, was jointly celebrated by CGST Mumbai Zone and State GST Maharashtra, in Mumbai today. Chief Minister of Maharashtra, Shri Devendra Fadnavis was present as the Chief Guest at the programme. The dignitaries present on the occasion also included Shri Ashish Jaiswal, Minister of State for Finance and Planning, Government of Maharashtra; anf Smt. Ritu Tawde, Mayor, BMC; among others. Speaking on the occasion, Chief Minister of Maharashtra Shri Devendra Fadnavis said that the introduction of the Goods and Services Tax (GST) marked a historic turning point in India's indirect tax system, ushering in a transparent, technology-driven and taxpayer-friendly tax regime. Shri Fadnavis said GST has transformed India into a more tax-compliant nation while providing a fair and level playing field for businesses across sectors.Shri Fadnavis stated that building consensus for GST had taken several years. He recalled that even after the introduction of the Value Added Tax (VAT), multiple indirect taxes continued to exist, including municipal octroi in Maharashtra, resulting in a heavy compliance burden for taxpayers and administrative challenges for tax authorities. Honest businesses also suffered due to tax evasion by unscrupulous entities, he added. Shri Fadnavis stated that Prime Minister Shri Narendra Modi's visionary leadership played an important role in implementing GST. The CM also paid tribute to the late Union Finance Minister Shri Arun Jaitley for his pivotal role in building consensus among the states. He said the Government of India's decision to assure states of 14 per cent year-on-year revenue growth for five years was a bold and confidence-building measure that facilitated the successful rollout of GST. Describing the GST Council as one of the most significant pillars of the GST framework, Shri Fadnavis said it is a true example of cooperative federalism, where the Centre and States collectively take consensus-based decisions. He also termed the GST Network (GSTN) a shining example of technological innovation that has played a key role in the successful implementation of GST across the country. Shri Fadnavis said Maharashtra continues to register unprecedented growth in GST collections. During the last financial year, the State received nearly ₹1.87 lakh crore as its GST share. Maharashtra remains the highest GST-contributing State in the country, with GST collections exceeding the combined collections of Karnataka and Gujarat, the States ranked second and third, he said. Highlighting the role of technology in tax administration, the Chief Minister said the use of Artificial Intelligence (AI), digital intelligence and other modern technologies would further strengthen tax compliance while ensuring smoother and more effective tax enforcement. Referring to GST 2.0 reforms, Shri Fadnavis said structural changes and rationalisation of tax slabs have benefited businesses by simplifying compliance and creating greater opportunities for growth. He added that continuous efforts are being made to further improve the Ease of Doing Business (EoDB) through ongoing reforms and simplification measures. The Chief Minister lauded the officers and personnel of both the Central and State GST departments for their dedicated service. He said their sustained efforts have contributed significantly to revenue mobilisation, infrastructure development, social welfare and the overall economic progress of Maharashtra and the country. The programme was jointly coordinated by Ms. Prachi Saroop, Principal Chief Commissioner, CGST & Central Excise, Mumbai Zone and Shri Asheesh Sharma, Commissioner, State GST, Maharashtra. Senior officers of CBIC, officers of the State GST Department, representatives oftrade and industry associations, tax professionals, and departmental officers participated in the celebrations. At the outset, Ms. Prachi Saroop, Principal Chief Commissioner, CGST & Central Excise, Mumbai Zone, welcomed the distinguished guests and members of the GST fraternity. Addressing the gathering, Principal CC, CGST & Central Excise, Ms. Saroop highlighted the achievements of Mumbai Zone during FY 2025-26. Ms. Saroop highlighted the excellent growth in GST revenue collections in Maharashtra State over the years. She emphasized that the growth reflects the resilience of the economy, improved voluntary compliance, effective taxpayer outreach programmes, and data-driven administration. She further highlighted the efforts of the department in facilitating trade and industry through faster processing of taxpayer services. She noted that GST has emerged as one of the most successful tax reforms in the country, significantly enhancing transparency, reducing the cascading effect of taxes, and creating a unified national market. Shri Asheesh Sharma, Commissioner, State GST, Maharashtra, said that the GST Council has emerged as a successful model of consensus-based policymaking and called for further reforms, including GST rate rationalisation, simplified compliance and faster, technology-driven refunds for taxpayers. Stressing that nearly 90 per cent of taxpayers are compliant, he said the focus should be on making tax administration more efficient and taxpayer-friendly.On the occasion, Certificates of Appreciation were presented to outstanding officers of the department for rendering dedicated and meritorious service and for promoting excellence in tax administration. The programme also featured presentations showcasing the achievements of Mumbai Zone, initiatives undertaken for taxpayer facilitation, digital governance measures, and best practices adopted in GST administration. The event concluded with a vote of thanks expressing gratitude to all stakeholders of the GST fraternity, including taxpayers, trade associations, tax professionals, State GST authorities, and departmental officers, for their continued support and contribution towards the success of GST. CCEELLEEBBRRAATTIINNGG 99 YYEEAARRSS --OOFF-- GGSSTT|| 11 NNAATTIIOONN streamtech Watch on * * * PIB Mumbai | Bharati JK/ Sriyanka Chatterjee/Arushi Kumari/Darshana Rane Follow us on social media: @PIBMumbai /PIBMumbai /pibmumbai pibmumbai[at]gmail[dot]com /PIBMu mbai /pibmumbai (रलीज़ आईडी: 2279982) आगंतुक पटल : 104 इस वज्ञ को इन भाषाओ ंम पढ़: Marathi

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