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Study on Impact of GST on the Indian Economy

Dr. Suresh Pattanayak – Associate Professor , Amity Business School , Amity University , Chhattisgarh , E-MAIL:- skpattanayak@rpr.amity.edu

Piya Patel – Student ,Amity Business School , Amity University , Chhattisgarh . E- MAIL:- piyapatel0124@gmail.com

Abstract

The implementation of the Goods and Services Tax (GST) in India is a revolutionary change in the indirect taxation system of the country. GST was launched on July 1, 2017, and it aimed at consolidating a myriad of indirect taxes imposed by the Centre and the States into a single, simplified tax system. This historical tax overhaul was anticipated to minimize the cascading burden of tax, maximize tax compliance, and simplify businesses' taxation process. The GST structure, with its multi-stage and destination-based system, aims to enhance ease of doing business, raise revenue transparency, and promote a formal economy. The current paper discusses how the GST has affected different segments of the Indian economy and whether it has been as reformative as promised.
The study examines the impact of GST on industrial development, consumer patterns, price trends, and government receipts. It evaluates the benefits of having uniform tax rates, hassle-free input tax credits, and cutting down on logistics cost, in addition to the drawbacks of the intricate compliance process, lack of digital infrastructure, and sectoral imbalances. The essay relies on recent secondary data sources as well as case-specific observations to critically assess GST's impact on the economic dynamics of India. Through this, the research will attempt to deliver insight into overall effectiveness in fulfilling its intended economic ends and areas requiring policy refinement.

Keywords

GST, Indian Economy, Indirect Tax, Economic Reform, Sectoral Impact, Compliance, Tax Structure, Revenue Generational