Role and Consequences of Goods & Services Tax (GST) on the Indian Economy

Abstract

This research paper examines the role and consequences of the Goods and Services Tax (GST) on the Indian economy. Implemented on July 1, 2017, GST replaced multiple indirect taxes levied by the central and state governments, aiming to simplify the taxation system and promote economic growth. Additionally, it explores the challenges faced during the implementation phase and evaluates the long-term implications of GST on India's economic landscape. The findings indicate that GST has contributed to enhanced tax compliance, formalization of the informal sector, and increased revenue collection. While some sectors experienced short-term disruptions, the overall consequences of GST on the Indian economy have been positive, fostering a more unified and integrated tax system.