ASSESSING THE LONG-TERM EFFECTS OF GST ON CHOSEN SECTORS IN THE INDIAN ECONOMY
Keywords:Goods and Services Tax (GST), Tax Reform, Indian Economy, Sector-Specific Impact, Agriculture Sector, Automobile Sector, Financial Sector, Infrastructure Sector, Hospitality Sector, GDP Contribution, Growth Rates, Capital Investment, Sectoral Resilience, Compliance, Economic Evolution.
The Goods and Services Tax (GST) has been a transformative tax reform in India, ushering in a unified and integrated tax structure for goods and services across the nation. This paper delves into the profound and diverse impacts of GST on key sectors, including Automobile, Agriculture, Financial, Infrastructure, and Hospitality. Drawing upon a rich tapestry of literature and quantitative data analysis, the study unveils nuanced sector-specific dynamics. The agriculture sector, following GST implementation, experienced mixed growth rates but showcased remarkable increases in GDP contribution, suggesting significant growth potential. The automobile sector maintained consistent GDP contributions, while the financial sector exhibited steady growth, Although with fluctuations in growth rates. The infrastructure sector faced declining growth rates, reflecting complex interactions with GST and broader economic reforms. The hospitality sector displayed consistent growth rates and an expanding role in the economy.
The study's findings underscore the importance of sector-specific responses to GST, highlighting the need for tailored adaptation strategies. Recommendations include enhanced GST awareness and training programs, specialized impact assessment tools, and simplified compliance platforms. This study contributes to a comprehensive understanding of how GST has shaped various sectors, ultimately contributing to India's economic evolution.