IMPACT OF GST ON INFLATION IN MADHYA PRADESH

This research paper examines the impact that GST has had to bring about efficiency in controlling the general price level in the all the states in India, by assessing the plausible implications of GST on Inflation control In Madhya Pradesh In the long-run. This literature review was established when performing research in order to determine the impact of GST on inflation in the chosen state and it can be concluded that there is scarce empirical based research done regarding this aspect. Therefore, the present study intends to fill this gap by examining the effect of GST on inflation rates in the sample state of Madhya Pradesh between the rural and urban sectors based on secondary data and policy implications. The research as a method uses secondary data and descriptive statistics and regression analysis. The results show that GST has a dual bearing on the inflation rate in Madhya Pradesh as it positively influences the rural area but negatively affects the urban region. Therefore, it is found that GST has a mixed effect on the inflation rate in Madhya Pradesh and to further manage adverse consequences, recommendations for policy changes are given. Therefore, the study reveals that GST has a differential effect on inflation by areas and industries, as mentioned above. They have suggested coming up with policies like the changing of the tax rates, sectorial support and public education to reduce the effect of GST on the inflation rates. The study presents the findings of the research paper to the policymakers, the business world and industries in an attempt to help them understand the effects of GST on inflation in Madhya Pradesh.