Evaluate the progress of GST since its implementation in 2017. What are the remaining challenges in making it a truly unified national market tax?

Q. Evaluate the progress of GST since its implementation in 2017. What are the remaining challenges in making it a truly unified national market tax? (15 marks, 250-350 words)

Introduced on 1 July 2017 under the Constitution (101st Amendment) Act, 2016, GST subsumed 17 central and state taxes and 23 cesses to build "one nation, one tax". Nine years on, its revenue and institutional record is impressive, though full market unification remains unfinished.

Progress achieved - Revenue buoyancy: gross collections touched a record ₹2.43 lakh crore in April 2026, up 8.7% YoY, with net collections at ₹2.11 lakh crore — resilience despite global headwinds [2]. - Cooperative federalism institutionalised: the GST Council (Article 279A), chaired by the Union Finance Minister with weighted three-fourths voting, has met over 55 times and decided rates, exemptions and e-invoicing largely by consensus [1]. - Compliance architecture: e-invoicing, auto-populated returns and data-driven risk profiling have widened the base and improved audit trails [1]. - Common market gains: abolition of octroi, entry tax and CST removed check-posts and cascading, cutting freight turnaround times. - Dispute resolution: the GST Appellate Tribunal, with qualifications widened by the CGST (Second Amendment) Act, 2023, is being operationalised [3].

Remaining challenges - Incomplete coverage: petroleum, electricity and alcohol stay outside GST, breaking the input-tax-credit chain and perpetuating cascading. - Structural asymmetry: import-linked collections grew ~26% against only 4.3% domestic growth, pointing to subdued domestic demand and weaker domestic compliance [2]. - Rate complexity: multiple slabs, cess and inverted duty structures fuel classification litigation. - Leakage: fake invoicing and ITC fraud persist; refunds rose 19.3% YoY, demanding tighter verification [2]. - Federal friction: compensation ended in June 2022, and Mohit Minerals (2022) held Council recommendations persuasive, not binding, raising risks of divergent state action [4].

GST has evolved from a disruptive transition into a stable, buoyant and technology-driven tax system, yet remains a work in progress rather than a finished single market. Bringing petroleum and electricity into its ambit, rationalising slabs, and fully operationalising the GSTAT — while preserving Council consensus — would realise Article 246A's promise of a genuinely unified national market.

(~320 words)

Sources: 1. The GST Council — GST Council, Government of India — Article 279A, composition, three-fourths weighted voting, Council decisions on rates and e-invoicing 2. GST Revenue Collections, April 2026 — Ministry of Finance / Press Information Bureau — ₹2.43 lakh crore gross, 8.7% YoY growth, net ₹2.11 lakh crore, import vs domestic growth, refund rise 3. The Central Goods and Services Tax (Second Amendment) Bill, 2023 — PRS Legislative Research — GST Appellate Tribunal, membership qualifications 4. Union of India v. Mohit Minerals Pvt. Ltd. (2022), Supreme Court of India — GST Council recommendations are persuasive, not binding (official judgment page not reachable; cited title-only)