Beyond Tax Reform: Evaluating the Socio-Economic Impact of GST on Relief, Equity, and Consumption in India

Abstract

India’s tax policy framework has a significant influence on the country’s economic growth, business environment, and fiscal stability. GST, known as “Goods and Services Tax,” is a comprehensive indirect tax that is levied on the manufacture, sale, and consumption of goods and services at the state and national levels. All the indirect taxes that are levied on goods and services by the Central Government and State Governments are merged into a single tax called GST. Now, it is the only indirect tax that directly affects all the sectors of the Indian economy.

Before GST was introduced into the Indian taxation system, VAT was levied at different rates on goods. Despite the success of VAT, there are still certain limitations in its structure at both the central and state levels. To solve the issues untouched by vat, GST came into effect. In India, the GST was implemented from 1 July 2017. For this, the Constitution (One Hundred and Twenty Second Amendment) Bill, 2014 was Introduced in the Lok Sabha.

This Study aims to understand the socio-economic impact of Goods and Services Tax in India, particularly in terms of tax relief, equity, and consumption patterns. Moreover, it analyzes the impact of GST on the Indian taxation system and economic structure, and the study is based on secondary data collected from government reports, research papers, and official publications.