A Comparative Study of GST and GST 2.O: Impact on Economic Growth
Published: 2025
Author(s) Name: G. Bala Chandar, P. Mariselvam |
Author(s) Affiliation: Government Arts and Science College for Women Alangulam, Tenkasi District, Tamil Nadu.
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Abstract
In order to streamline the tax code and increase revenue efficiency, the Goods and Services Tax (GST), which was implemented in India in July 2017, was replaced by a number of indirect taxes, including the Value Added Tax (VAT), Central Sales Tax (CST), and others. However, because of its intricate processes and higher tax rates on necessities, the original system was criticized. The government has responded by implementing a number of reforms aimed at rationalizing tax slabs, easing the burden on individuals, and fostering economic competitiveness. The GST lowers fiscal fraud, raises the GDP rate from 1% to 2%, and promotes tax system transparency. This article assesses the effects of the GST on India’s economic growth by contrasting the pre-reform (GST) and post-reform (GST 2.O) periods. The report provides insights into how the country’s long-term growth has been influenced by the GST reforms by highlighting shifts in revenue generation, consumer spending, and sectoral performance.
Keywords: GST, GST2.O, Tax Rates, Economic Growth, etc
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