Impact of Goods and Services Tax (GST) on the Indian Economy: A Legal, Managerial, and Economic Analysis

The introduction of the Goods and Services Tax (GST) on 1 July 2017 marked one of the most comprehensive indirect tax reforms in India's post-independence economic history. Designed to replace a fragmented system of multiple indirect taxes imposed by the Union and State Governments, GST sought to establish a unified national market by simplifying tax administration, reducing cascading taxation, improving compliance, and enhancing transparency. Beyond its fiscal objectives, the reform has significantly influenced business management practices, supply chain structures, digital governance, interstate commerce, and investment decisions. While GST has strengthened tax administration through technological integration and broadened the indirect tax base, its implementation has also revealed several operational, legal, and administrative challenges, particularly for small enterprises and sectors characterized by complex compliance requirements. The present study examines GST through an interdisciplinary perspective by analysing its legal foundation, managerial implications, and economic consequences on the Indian economy. It explores the constitutional evolution leading to GST, the rationale behind replacing the previous indirect taxation regime, and the broader significance of the reform in promoting economic integration and cooperative federalism. The paper further evaluates the extent to which GST has fulfilled its intended objectives while identifying continuing challenges that require policy attention. Through a doctrinal and analytical approach based on statutory provisions, constitutional developments, government reports, and academic literature, the study aims to present a balanced assessment of one of India's most significant economic reforms.