GST Implementation in India: A Review of Its Economic and Business Impacts

The implementation of the Goods and Services Tax (GST) in India on July 1, 2017, was a significant reform aimed at simplifying the country’s complex tax system and creating a seamless national market. This paper provides a comprehensive review of the economic and business impacts of GST in India, with a focus on the period from 2017 to 2024. The analysis explores how GST has influenced key macroeconomic indicators, such as GDP growth, tax revenue, inflation, and the formalization of the economy. In addition, the paper examines its effects on various business sectors, including manufacturing, services, MSMEs, and e-commerce, and investigates the challenges faced by businesses in terms of tax compliance, operational adjustments, and supply chain dynamics. Through a mixed-methods approach that combines both qualitative analysis of policy documents and quantitative assessment of economic trends, the study highlights both the successes and ongoing challenges of GST implementation. While GST has contributed to increased transparency, broader tax compliance, and a more formal economy, issues like technological bottlenecks, complex tax rates, and delays in refund processing remain obstacles to its full potential. The findings provide insights into the evolving nature of tax reforms in emerging economies and suggest avenues for policy improvements in India’s GST framework.