Goods and Services Tax (GST) is a reformative indirect tax framework that has significantly impacted the Indian economy since its implementation in July 2017. Some of the impacts of GST on the Indian economy and its sectors are as follows: Pros:

• Reduction in the cascading effect of tax: GST has eliminated the cascading effect of taxes that existed under the earlier tax regime. This has resulted in a reduction in the tax burden on the end consumer.
• Improved efficiency: GST has replaced multiple taxes with a unified tax system, thereby simplifying the tax structure and making it more efficient.
• Uniform tax rates: GST has brought about uniform tax rates across the country, making it easier for businesses to operate across states.
• Wider tax net: GST has increased the number of taxpayers significantly due to its online filing system and strict compliance regime.

Cons:

• Initial compliance cost: Businesses faced an initial compliance cost when transitioning to the GST regime due to the need to modify existing IT systems and workflows.
• Complexity: Despite efforts to simplify GST, businesses still struggle with the complex structure and compliance procedures.
• Impact on small businesses: GST has negatively impacted small businesses that may not have the resources to comply with the regulations.
• Non-inclusion of petroleum products: GST currently does not cover petroleum products, leading to increased costs for businesses in sectors such as logistics and transportation.

Overall, GST has had a positive impact on the Indian economy by simplifying the tax structure and making it more efficient. However, policymakers need to address the remaining challenges to ensure the benefits of GST are shared equally across businesses and sectors.