GST and Its Impact on the Indian Economy
Author : Bhavna Sharma
Abstract :
The introduction of the Goods and Services Tax (GST) in India represents one of the most significant tax reforms in the country’s economic history. GST aimed to unify multiple indirect taxes into a single, streamlined tax system to simplify compliance, reduce tax cascading, expand the tax base, formalize the economy, and ultimately boost growth and revenue. This paper examines the impact of GST on the Indian economy, assessing both its positive effects-such as improved transparency, tax base expansion, reduction in logistics costs, and enhanced consumption-and the challenges faced by small and medium enterprises (SMEs), compliance burdens, and uneven sectoral effects. The analysis draws from empirical data and recent economic developments to provide a balanced view.
Keywords : GST, Indian economy, tax reform, formalization, MSMEs, consumption, fiscal impact