The Influence of GST on the Indian Economic Landscape: An Exploratory Study

Abstract

The implementation of Goods and Services Tax (GST) in India marked a significant turning point in the country's economic landscape. This exploratory study delves into the multifaceted influence of GST on the Indian economy, with a focus on its impact on various sectors, the Consumer Price Index (CPI), and the financial well-being of the average individual. The first objective of this study is to examine the effects of GST on diverse sectors operating within the Indian markets. GST sought to simplify the tax structure, reduce the cascading effect of taxes, and promote a more unified market. We investigate how this transformative tax reform has affected sectors such as automobile, real estate, consumer goods, information technology, and telecom, using statistical data to provide insights into the changes observed in these sectors. The second objective centers on investigating the influence of GST on the Consumer Price Index (CPI). The introduction of GST initially led to fluctuations in inflation rates, but subsequent adjustments aimed to stabilize prices. We utilize statistical data to analyze inflation trends and the impact of GST on the purchasing power and cost of living for the common man. The third objective is to assess the implications of GST on the financial well-being of the average individual. We examine how GST has influenced savings, expenditure patterns, and tax compliance for the common man, considering the impact on essential items and the ease of doing business. Through this exploration, we aim to provide a comprehensive understanding of the consequences of GST on the economic landscape and the everyday lives of Indian citizens.