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GST and Economic Growth: A Conceptual Review
Subject area: Management and Commerce · Area of research: GST and Economic Growth
DOI: 10.64388/IREV9I12-1719393
Abstract
One of the many landmark tax laws passed in India, to streamline the indirect tax system and establish a single national market is the Goods and Services Tax (GST). GST is a single-tiered tax that replaced multiple taxes levied at the center and by various states at the same time, came in effect from 1st July 2017, and is efficient, free of cascading, and aims to boost the economy. The study is conceptual and involves a reading and appraisal of the literature, government reports, government documents, and scholarly research that exists regarding the linkage between GST and economic growth. The study examines theoretically the effects of GST on important indicators of the economy such as tax compliance, governments revenue, ease of doing business, investment, industrial productivity, and integration. It also covers the issues that can arise in the implementation process of GST including issues related to compliance as they in relation to small businesses, technological issues, multiple taxes and administrative issues. The review has shown that GST has made a huge contribution to the efficiency and transparency of the tax regime in India and promoted its long-term economic uplift. But its overall effectiveness has hang-on to continuous policy changes, technological development, simplified compliance procedures and efficient administration. The study concludes the GST it is an important policy tool which can enhance growth of the economy by creating transparency, competition and efficient business environment in the country. The results are informative for policy makers, researchers and practitioners interested in the effect of GST on sustainable economic development.
Keywords
Goods and Services Tax (GST), Economic Growth, Indirect Taxation, Fiscal Policy, Public Finance, Tax Reform, Economic Development, India.
References
[1] Ahmad, E., & Poddar, S. (2009). Goods and Services Tax reforms and intergovernmental considerations in India. Department of Economic Affairs, Ministry of Finance, Government of India.
[2] Centre for Budget and Governance Accountability. (2021). GST and public finance in India. CBGA.
[3] Government of India. (2024). GST statistics and collections. GST Council Secretariat. https://gstcouncil.gov.in
[4] Government of India. (2024). Goods and Services Tax (GST). GST Portal. https://www.gst.gov.in
[5] International Monetary Fund. (2022). Fiscal Monitor: Helping people bounce back. International Monetary Fund. https://www.imf.org
[6] Kelkar, V. (2009). Report of the Thirteenth Finance Commission (2010–2015). Government of India. https://fincomindia.nic.in
[7] Khan, M. (2012). Goods and services tax (GST) in India: Prospect for states. Budgetary Research Review, 4(1), 38–64.
[8] National Institute of Public Finance and Policy. (2021). GST reforms in India: Issues, challenges and policy recommendations. NIPFP. https://www.nipfp.org.in
[9] NITI Aayog. (2022). Economic reforms and growth in India. Government of India. https://www.niti.gov.in
[10] Organisation for Economic Co-operation and Development. (2023). Consumption Tax Trends 2023: VAT/GST and excise core design features. OECD Publishing. https://www.oecd.org
[11] Pinki, Supriya, K., & Verma, R. (2014). Goods and Services Tax: Panacea for indirect tax system in India. Tactful Management Research Journal, 2(10), 1–7.
[12] Rao, M. G. (2011). Goods and Services Tax in India: Progress, performance and prospects. National Institute of Public Finance and Policy Working Paper. NIPFP.
[13] Reserve Bank of India. (2023). Report on Currency and Finance 2022–23. Reserve Bank of India. https://www.rbi.org.in
[14] Vasanthagopal, R. (2011). GST in India: A big leap in the indirect taxation system. International Journal of Trade, Economics and Finance, 2(2), 144–146.
[15] World Bank. (2022). World Development Report 2022: Finance for an equitable recovery. World Bank. https://www.worldbank.org
How to cite this paper
@article{1719393,
author = {Ankur, Pooja Sachdeva},
title = {GST and Economic Growth: A Conceptual Review},
journal = {Iconic Research And Engineering Journals},
year = {2026},
volume = {9},
number = {12},
pages = {3031-3035},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1719393.pdf},
abstract = {One of the many landmark tax laws passed in India, to streamline the indirect tax system and establish a single national market is the Goods and Services Tax (GST). GST is a single-tiered tax that replaced multiple taxes levied at the center and by various states at the same time, came in effect from 1st July 2017, and is efficient, free of cascading, and aims to boost the economy. The study is conceptual and involves a reading and appraisal of the literature, government reports, government documents, and scholarly research that exists regarding the linkage between GST and economic growth. The study examines theoretically the effects of GST on important indicators of the economy such as tax compliance, governments revenue, ease of doing business, investment, industrial productivity, and integration. It also covers the issues that can arise in the implementation process of GST including issues related to compliance as they in relation to small businesses, technological issues, multiple taxes and administrative issues. The review has shown that GST has made a huge contribution to the efficiency and transparency of the tax regime in India and promoted its long-term economic uplift. But its overall effectiveness has hang-on to continuous policy changes, technological development, simplified compliance procedures and efficient administration. The study concludes the GST it is an important policy tool which can enhance growth of the economy by creating transparency, competition and efficient business environment in the country. The results are informative for policy makers, researchers and practitioners interested in the effect of GST on sustainable economic development.},
keywords = {Goods and Services Tax (GST), Economic Growth, Indirect Taxation, Fiscal Policy, Public Finance, Tax Reform, Economic Development, India.},
month = {June},
doi = {https://doi.org/10.64388/IREV9I12-1719393}
}