Archive · 2 Jun 2025
India Launches Drive to Formalize Economy, Boost GST Compliance
The Indian government is starting a big project to make sure more businesses pay their taxes correctly.
They want to bring businesses that aren't registered for GST into the system.
This includes shops and food vendors.
They hope this will bring in more tax money.
They also hope to make the economy stronger.
They are doing this because they want to reduce tax evasion.
More businesses paying taxes could lead to lower tax rates for everyone in the future.
India recently had its highest ever GST collections, partly due to more businesses paying taxes.
The Indian government launched a nationwide drive to bring informal businesses into the Goods and Services Tax (GST) net.
The initiative aims to reduce tax evasion and broaden the revenue base.
Record GST collections of ₹2.36 lakh crore were reported in April 2025, driven by new taxpayers.
Over 2.5 million new GST registrations were recorded in FY25, bringing the total to 15 million.
The government aims for more oversight, better compliance, smoother trade and potential lower rates.
- Who
- Government of India
- What
- Launched a drive to formalize informal economy and boost GST compliance
- When
- Initiated recently, with record GST collections in April 2025
- Where
- India
- Why
- To curb tax evasion, broaden the tax base, and strengthen the economy
- Country
- India
- Record GST Collections
- April 2025
- April 2025 GST Revenue
- ₹2.36 lakh crore
- Total GST Taxpayers
- 15 million
- New GST Registrations in FY25
- 2.5 million