Goods and Service Impact on Indian Economy

ABSTRACT The Goods and Services Tax (GST) is a revolutionary reform in India's indirect tax system, aiming to replace a complex tax structure with a simpler, unified one. It integrates multiple taxes such as VAT, excise duty, and service tax into a single tax, ensuring seamless flow of tax credit across the supply chain. GST reduces the cascading effect of taxes, enhances ease of doing business, and promotes transparency. Its implementation has brought significant benefits to the Indian economy, including increased revenue, formalization of the informal sector, and economic efficiency. Despite initial challenges, such as technical glitches and compliance burdens, GST holds promise for sustained growth. The aim of this paper is to assess GST’s overall impact on India’s economy by evaluating its structure, implementation, sector-wise effects, and future recommendations.