The Impact of 2025 GST Reforms on the Indian Economy: An Empirical Analysis

Abstract

In this study, We are looking at the planned Next-Generation GST reforms (GST 2.0), which will cut the number of GST tiers from four (5%, 12%, 18%, and 28%) to three (5%, 18%, and 40% for demerit products), with some essential goods being left out. We use a made-up survey of 70 stakeholders, such as business owners, consumers, economists, and MSMEs, to look at the effects on consumption, compliance, revenue, and economic growth. We base our findings on secondary data about GST collections, GDP growth, and sectoral performance. The tax base will grow, which will make up for the money that was lost at first. This will show that people are following the rules and buying more. The survey showed that customers like the lower prices, but they are worried about the company's short-term loss of money. The reforms are expected to boost India's GDP growth rate to between 7% and 8% by the end of 2025.

References

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