Impact of Goods and Service Tax on the Business of Traders & Manufacturers

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Alisha, Nitin Thapar

Abstract

 The Indian government has taken a major step in the direction of indirect tax reform. Since 1 July 2017, government has implemented Goods and Service Tax (GST) in place of other indirect taxes. The implementation of GST plays an important role in the growth of Indian Economy. GST being a more transparent tax structure helps to generate more revenue to the Government, also reducing corruption and better compliances. It also encourages the ‘Make in India’ program that was initiated by government, by making input tax credit available to the manufacturers and service providers. The government revenue can also be used towards developmental projects and welfare schemes. The increased revenue will contribute to better GDP of the country that will enhance the image of our country in the global platform. The implementation of a comprehensive GST paves way to efficient allocation of factors of production that leads to gain in GDP, exports and the growth of the economy. The present paper highlights the impact of GST on the business of traders and manufacturers of the state and the problems & challenges faced by them after implementation of GST.

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How to Cite
Alisha, Nitin Thapar. (2025). Impact of Goods and Service Tax on the Business of Traders & Manufacturers. European Economic Letters (EEL), 15(1), 719–729. https://doi.org/10.52783/eel.v15i1.2448
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