IMPACT OF GOODS AND SERVICE TAX (GST) ON INDIAN ECONOMY: REFERENCE TO AUTOMOBILE INDUSTRY

Abstract

In an effort to simplify taxes and stimulate economic growth, India's government implemented the Goods and Services Tax (GST) in 2017. With the automotive industry being one of the most important drivers of industrial growth and job creation in India, this study aims to provide a thorough analysis of the effects of GST on the country's economic development. To do a quantitative study, one must compare the economy's growth, tax income, investment trends, and consumer behaviour both before and after GST was implemented. The purpose of this article is to shed light on the many aspects of GST's impact on the car industry by analysing empirical data and expert opinion. Price variations, supply chain efficiency, tax compliance loads, market competitiveness, and customer preferences are all part of these aspects. Contributing to the current body of knowledge on taxation changes and economic development methods, this paper outlines the numerous effects of GST on the Indian economy, specifically within the car sector. Insights gained from this study can help scholars, policymakers, and industry stakeholders evaluate the success of the Goods and Services Tax (GST) and develop plans to promote long-term economic growth in India.