The Impact Assessment of GST 2.0 on the Indian Economy

Monti Kumar

GST 2.0, India, tax reform, fiscal policy, compliance, e-invoicing, indirect taxation

The introduction of the Goods and Services Tax (GST) in 2017 represented one of India’s most ambitious reforms to indirect tax. However, criticisms relating to the complexities of compliance, the multiplicity of tax slabs, and frictions related to transitional arrangements accumulated. As a result, policymakers have pushed ahead with what is often referred to as incipient “GST 2.0.” The purpose of this paper is to discuss some of the elements of GST 2.0, especially the rationalization of rates into two major tax slabs. By using a combination of theoretical analysis, policy reports and current media coverage, this paper assesses the implications for, amongst others, prices, demand, inflation, and government revenues in the short term, and makes observations about the implications for equality (both positive and negative) across states, sectors and firms. Although rationalization may yield some operational benefits in the long- term relating to simplification, support for lower dispute, and compliance levels, there are still some transitional operational challenges including: wage levels and volatility in tax revenues in the short-term period, and perhaps a greater difficulty adjusting to the increased compliance burden of SMEs in the long-run.

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"The Impact Assessment of GST 2.0 on the Indian Economy ", IJSDR - International Journal of Scientific Development and Research (www.IJSDR.org), ISSN:2455-2631, Vol.10, Issue 9, page no.a140-a146, September-2025, Available :https://ijsdr.org/papers/IJSDR2509022.pdf

Volume 10 Issue 9, September-2025

Pages : a140-a146

Paper Reg. ID: IJSDR_304844

Published Paper Id: IJSDR2509022

Downloads: 000127

Research Area: Arts1 All

Country: Bareilly, Uttar Pradesh, India

Published Paper PDF: https://ijsdr.org/papers/IJSDR2509022

Published Paper URL: https://ijsdr.org/viewpaperforall?paper=IJSDR2509022

ISSN: 2455-2631 | IMPACT FACTOR: 9.15 Calculated By Google Scholar | ESTD YEAR: 2016

An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 9.15 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator

Publisher: IJSDR(IJ Publication) Janvi Wave

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