Goods and Services Tax (GST) and Its Impact on Business: A Desrciptive Anlysis

Abstract The Goods and Services Tax (GST) represents one of the most comprehensive indirect tax reforms implemented in India, aimed at creating a unified and transparent taxation system. By subsuming multiple indirect taxes such as VAT, excise duty, and service tax, GST has significantly transformed the business environment and improved tax administration. This study critically examines the impact of GST on business operations, cost structures, compliance mechanisms, and overall growth of enterprises, with particular focus on small and medium businesses. The research adopts a descriptive methodology based on secondary data collected from government reports, journals, and published literature, supported by simple percentage analysis for interpretation. The findings of the study Indicate that GST has enhanced transparency, reduced the cascading effect of taxes, improved logistics efficiency, and promoted digital transactions, thereby contributing to ease of doing business. However, the study also identifies key challenges such as increased compliance burden, frequent changes in tax regulations, and technical issues related to the GST portal, especially affecting small businesses. The paper concludes that while GST has brought structural improvements to the Indian tax system, continuous policy support, simplification of procedures, and technological upgrades are essential to maximize its long-term benefits.