About GST Day
GST Day marks 1 July 2017, when India's Goods and Services Tax came into force and replaced 17 central and state indirect taxes and 13 cesses with one system. The finance ministry and tax departments observe it each year, and in 2027 it falls on Thursday, 1 July 2027.
Why is GST Day observed on 1 July?
GST Day is observed on 1 July because the Goods and Services Tax came into force at midnight on 1 July 2017. The government marked the moment with a special joint session in the Central Hall of Parliament that ran from the night of 30 June into 1 July. The Congress, the Trinamool Congress and the Left parties boycotted the session, arguing that the new tax would hurt lower- and middle-income households.
GST replaced a tangle of indirect taxes: central levies such as excise duty and service tax, and state levies such as VAT, entry tax and entertainment tax. In all, 17 taxes and 13 cesses were folded into three parts. Central GST and State GST are charged together on sales within a state; Integrated GST applies to sales from one state to another. Petroleum products, alcohol for drinking and electricity stayed outside GST and are still taxed separately by the states.
How long did it take India to bring in GST?
India took about 17 years to bring in GST, from the first official proposal to the launch. It needed a constitutional amendment because it changed how taxing powers are shared between the Centre and the states.
- 1999The proposal
An advisory panel under Prime Minister Atal Bihari Vajpayee backs a single national GST. The Asim Dasgupta committee is later asked to design a model.
- 2002–2005Kelkar task force
A task force led by Vijay Kelkar recommends moving to GST.
- 19 Dec 2014Bill introduced
Finance Minister Arun Jaitley introduces the 122nd Constitution Amendment Bill.
- 3 and 8 Aug 2016Parliament passes it
The Rajya Sabha passes the amended bill on 3 August, the Lok Sabha on 8 August.
- 12 Aug 2016First ratification
Assam becomes the first state to ratify. More than half the states must approve a change of this kind.
- 8 Sep 2016Assent
The President signs the One Hundred and First Amendment.
- 1 Jul 2017Launch
GST comes into force at midnight.
- 22 Sep 2025GST 2.0
The rate structure is simplified to two main slabs.
What changed with GST 2.0?
GST 2.0, the reform that took full effect on 22 September 2025, cut the main tax slabs from four to two. At launch, most goods and services were taxed at 5, 12, 18 or 28 per cent, with an extra compensation cess on luxury and sin goods. After the 2025 reform, most items sit at 5 or 18 per cent, and a 40 per cent rate applies to a short list of luxury and sin goods. Registration for compliant applicants was also automated to within three working days.
| At launch, 2017 | After GST 2.0, 2025 | |
|---|---|---|
| Main rates | 5%, 12%, 18%, 28% | 5%, 18% |
| Luxury and sin goods | 28% plus compensation cess | 40% |
| Taxes it replaced | 17 taxes and 13 cesses | No change |
| Outside GST | Petroleum products, alcohol for drinking, electricity | No change |
The rates are set by the GST Council, where the Union Finance Minister sits with the finance ministers of the states. Every change is a negotiation between the Centre and the states, which is one reason GST Day speeches tend to talk about cooperative federalism.
What does GST look like after nine years?
By its ninth anniversary in 2026, GST had grown in both revenue and reach. Government figures show gross collections rising from ₹7.4 lakh crore in 2017-18 to ₹22.27 lakh crore in 2025-26, the highest for any year so far. The number of registered taxpayers grew from 66.5 lakh at launch to 1.65 crore active registrations by May 2026.
Complaints remain. Businesses point to input tax credit being blocked for minor filing delays, and the exclusion of diesel and petrol means transport firms cannot claim credit on their largest cost.
Who marks GST Day, and how?
GST Day is marked mainly inside the tax system: the finance ministry, the Central Board of Indirect Taxes and Customs and its field offices, and state tax departments, which hold functions, release figures and recognise officers and taxpayers. Chambers of commerce, CA study circles and tax bar associations hold seminars on recent changes. It is not a public holiday.
1 July is a crowded day for professionals. It is also Chartered Accountants Day, the foundation day of the Institute of Chartered Accountants of India, and National Doctors' Day. A CA friend will get two sets of wishes on the same morning.
What to write on GST Day
A good GST Day message is short and professional, and recognises the people who make the system work: officers who process returns and refunds, and accountants who file them. A little humour about deadlines is fine among colleagues.
Happy CA Day and GST Day. Two reasons to celebrate on 1 July, and one fewer tax return to worry about today.
Happy GST Day. Thank you for the refunds processed, the queries answered and the patience with all of us who file late.
Happy GST Day. Thank you for keeping our books clean and our returns on time, month after month.
Warm wishes on GST Day. Here's to simpler filings and smoother credit in the year ahead.
Happy GST Day. You started your career in a system that is still changing, so keep reading the notifications. It will make you the best in the office.
How to wish someone on GST Day
GST Day is a professional occasion, mostly for tax officers, chartered accountants, GST practitioners, accountants and business owners. A good message recognises the work behind filing, auditing and compliance, often with a light touch about deadlines. Keep it free of politics; GST remains a debated policy, and a greeting is not the place to argue for or against it.
Write a few lines in your own words, pick a design and share it as one link on WhatsApp, Instagram or anywhere else. They open an animated card made just for them, with no app and no sign-up.
Language tip: English, Hindi + recipient language.
When is GST Day in 2026 and 2027?
GST Day is on 1 Jul every year. Only the weekday changes.
- 2026
- 2027
Frequently asked questions
When was GST introduced in India?
The Goods and Services Tax came into force across India at midnight on 1 July 2017. It was launched at a special joint session of Parliament in the Central Hall, which is why 1 July is observed as GST Day.
Which constitutional amendment introduced GST?
The One Hundred and First Amendment of the Constitution of India introduced GST. It was passed by Parliament in August 2016, ratified by the states, and received the President's assent on 8 September 2016.
What are the GST rates after GST 2.0?
Since 22 September 2025, most goods and services are taxed at 5 or 18 per cent under GST 2.0, and a 40 per cent rate applies to a small group of luxury and sin goods. The earlier 12 and 28 per cent slabs were largely removed.
Which items are outside GST?
Petroleum products, alcohol for human consumption and electricity are outside GST. States continue to tax them under their own laws, which is why fuel prices still differ from state to state.
Is GST Day a public holiday?
No. GST Day is an official observance for the finance ministry, tax departments and the tax profession. Banks, offices and GST filing portals work as usual on 1 July.
Last verified by the Kehdoo team on .