ABSTRACT

GST, popularly known as (Goods and Services Tax ), is an indirect tax of government of India, right
from the manufacturer to the consumer is a single tax on the supply of goods and services. In 2004, the
idea of GST was contemplated by the Task Force that was headed by V. L. Kelkar, the advisor to the
finance ministry, stated that the existing tax structure had several issues that would be minimized by the
GST system.
In GST, the theory of ability to pay or equality has been excluded in the system, which creates negatives
impacts on poor people. Every individual is liable to pay tax on output and is entitled to enjoy credit on
input tax paid and tax should be only on the amount of value added. According to the World Bank, GST
is one of the most complicated tax systems in the world, with its high tax rates and a larger number of tax
rates. Instead of making it a more simplified tax structure, the GST Council implemented it with five
standard rates ; 0 per cent, 5 per cent, 12 per cent, 18 per cent and 28 per cent which according to many
economists, makes the structure complex instead of simplifying it.
The GST system puts negative impact on the unemployment rate in India, growth rate, inflation rate, tax
rate, and also demands. GST should follow a progressive taxation principle, where taxes are levied
according to a taxpayer's ability to pay. The main aim of this research paper is to highlight the concept of
the GST and its negative impact on Indian economy.

Keywords: Growth Rate, Inflation Rate, Tax Rate, Unemployment, GST in India, Impact of GST,
impact, Indian economy.

RESEARCH QUESTIONS:

 How the concept of the GST implements negative impact on Indian economy?
 How the concept of GST is a complicated tax system in India?

OBJECTIVES OF STUDY:
  To Study the Concept Of GST and Its Impact On Indian Economy.
 To Study Improvement in GST System.
 To Evaluate the Challenges of GST.

RESEARCH METHODOLOGY

The essential data was collected from the data basically includes the terms, concepts that are linked
through the topic of “The Negative Impact of GST on Indian Economy” by books, research paper. The
secondary data collected from the published research paper, report and individuals in India. Specifically,
the secondary sources include journals, and websites.

LITERATURE REVIEW

The authors, World Bank (2018) and all other research study on “Negative impacts of GST in India”
concluded that the Indian GST system is among the most complicated ones in the world, with its high tax
rates and a larger number of tax rates and negative impact on its economy.