GST and Its Impact on the Indian Economy: Recent Amendments and Emerging Perspectives

The Goods and Services Tax represents one of the most transformative fiscal reforms in independent India's economic history. By replacing multiple indirect taxes with a unified destination-based taxation system, GST has significantly improved transparency, enhanced tax compliance, strengthened cooperative federalism, and promoted the integration of India's domestic market. The introduction of seamless Input Tax Credit, digital tax administration, electronic invoicing, and technology-driven compliance mechanisms has modernized the country's indirect tax ecosystem and contributed to greater administrative efficiency. The findings of this study indicate that GST has positively influenced government revenue, logistics efficiency, manufacturing competitiveness, formalization of business activities, and the overall ease of doing business. Continuous improvements through the GST Council have enabled the tax system to adapt to changing economic conditions and emerging technological developments. Recent amendments relating to mandatory e-invoicing, Aadhaar-based authentication, strengthened Input Tax Credit provisions, AI-enabled risk assessment, and the operationalization of GST Appellate Tribunals demonstrate the government's commitment to creating a transparent, technology-driven, and taxpayer-centric tax administration. However, challenges such as multiple tax slabs, compliance costs for MSMEs, delayed refunds, classification disputes, and frequent regulatory amendments continue to affect the effectiveness of the GST framework. Addressing these issues through tax rate rationalization, simplification of procedures, enhanced digital infrastructure, and broader stakeholder engagement will be crucial for maximizing the long-term benefits of GST. As India progresses towards the vision of Viksit Bharat @ 2047, GST is expected to play a pivotal role in strengthening fiscal capacity, encouraging investment, promoting digital governance, and supporting sustainable economic development. A stable, transparent, and continuously evolving GST framework will remain fundamental to India's aspiration of becoming a globally competitive and resilient economy.

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