Impact of GST on Indian Economy

Gomati Prasad Rai

doi:10.69968/ijisem.2026v5i3488-493

Authors

Gomati Prasad Rai Assistant Professor, Faculty of Commerce, K.N.I.P.S.S. Sultanpur

DOI:

https://doi.org/10.69968/ijisem.2026v5i3488-493

Keywords:

Treasury, Electronic Means, Imposed, Levied, Input Tax Credit, Evasion, One Nation One Tax.

Abstract

Goods and Services Tax (GST), implemented in India on July 1, 2017, replaced multiple indirect taxes such as VAT, Excise Duty, and Service Tax with a unified dual-tax structure comprising CGST, SGST, UTGST, and IGST. This paper examines the impact of GST on the Indian economy through exploratory research based on secondary data drawn from journals, articles, and government sources. The study outlines the basic features, benefits, and challenges of GST, and evaluates its sector-wise impact across electronics, FMCG, automobiles, textiles, real estate, banking, and logistics. Findings indicate that GST has simplified tax compliance, reduced cascading taxation through Input Tax Credit, improved transparency, widened the taxpayer base, and boosted government revenue and GDP growth. However, small businesses continue to face challenges related to compliance costs, technical difficulties, and frequent regulatory changes. The paper concludes that despite transitional hurdles, GST has emerged as a transformative reform strengthening India's economic structure and ease of doing business.

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