GST’s Contribution to Reducing Interstate Trade Barriers for Manufacturers in India : A Study

The introduction of Goods and Services Tax (GST) in India has had a profound impact on the manufacturing sector, with one of its most significant contributions being the reduction of interstate trade barriers.Prior to GST, India's manufacturing sector faced substantial challenges due to the fragmented and complex indirect tax structure, which led to inefficiencies in the movement of goods across state borders.By consolidating numerous taxes into a unified framework, GST has streamlined the movement of goods, reduced logistical costs, and enhanced the competitiveness of Indian manufacturers.This paper explores the economic effects of GST on reducing interstate trade barriers in India, focusing specifically on the manufacturing sector.It examines the challenges that manufacturers faced prior to GST implementation, the benefits realized after its introduction, and the ongoing issues, particularly for small and medium-sized enterprises (SMEs).Through a comprehensive review of the literature and secondary data analysis, this paper assesses the impact of GST on manufacturing efficiency, competitiveness, and overall growth in the Indian economy.