GOODS AND SERVICES TAX (GST) AND ITS ROLE IN TRANSFORMING THE INDIAN ECONOMY

The Goods and Services Tax (GST), introduced in India on 1 July 2017, is a significant indirect tax reforms in the economic history of India. GST replaced indirect taxes like excise duty, service tax, value-added tax (VAT), and entry tax, thereby creating a unified tax structure throughout India. The primary objective of GST was to establish a "One Nation, One Tax" system that simplifies taxation, reduces cascading tax effects, and promotes economic efficiency. GST has played a significant role in transforming Indian economy by enhancing tax compliance, increasing transparency, and broadening the tax base through a technology-driven framework. The implementation of GST has minimized barriers for movement of goods across different states, minimized logistics costs, and enhanced supply chain efficiency. GST has brought many businesses and enterprises under organized tax structure and encouraging digital payments. Furthermore, it has contributed to increased government revenues and strengthened fiscal federalism through cooperative decision-making under the GST Council. The reform has positively impacted. Despite initial challenges such as compliance complexities, technological issues, and adaptation costs for small businesses, continuous policy refinements have improved the effectiveness of the GST regime. This study examines the implementation, benefits, challenges, and economic implications of GST in India. It highlights how GST has transformed the indirect taxation system and contributed to creating a more integrated, transparent, and competitive economy.