Effect of Goods & Services Tax on Inflation and Consumer Prices:  An Empirical Study

Author(s)	Dr. Krishna C P
Country	India
Abstract	Abstract The implementation of the Goods and Services Tax in India on July 1, 2017, marked a significant overhaul of the country's indirect tax system. By unifying various central and state taxes into a single tax structure, GST aimed to streamline taxation and create a common national market. Its impact on inflation and consumer prices has been a subject of extensive analysis and debate. Overall, while GST introduced initial inflationary pressures, particularly in non-essential goods and certain services, its long-term effects have been more balanced. The reduction in cascading taxes and the availability of input tax credits have helped stabilize consumer prices over time. However, the complexity of the GST structure, with multiple tax slabs, has led to some confusion and compliance challenges. Ongoing efforts to simplify the tax system could enhance its effectiveness and consumer perception. This study aims to provide insights into the effect of GST on inflation and consumer prices.
Keywords	Goods and Services Tax, inflation, consumer prices, CPI, essential-goods, non-essential goods, services sector.
Field	Business Administration
Published In	Volume 7, Issue 3, May-June 2025
Published On	2025-05-28
DOI	https://doi.org/10.36948/ijfmr.2025.v07i03.46005
Short DOI	https://doi.org/g9mn3b

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