Goods and Services Tax and Its impact on India’s Foreign Trade: An Empirical Analysis

Author(s)	Ms. Ashwini V Sabitha, Dr. T Rajendra Prasad
Country	India
Abstract	The Goods and Services Tax [GST] implemented on 1st July 2017 represents the most significant tax reform in independent India. One of the primary objectives of GST was to create a unified national market and enhance the global competitiveness of Indian goods and services. This paper empirically examines the impact of GST on India’s foreign trade for the period 2014-15 to 2025-26.Using secondary data from DGCI&S, Ministry of Commerce, CBIC, RBI, and GST Council, the study analyzes trends in exports, imports, GST collections, refund performance, and sectoral trade performance. The pre-GST period 2014-17 is compared with the post-GST period 2017-26.The analysis reveals that post-GST, India’s total exports grew at a CAGR of 8.1% compared to -2.9% in the pre-GST period. Zero-rating of exports, seamless Input Tax Credit, and integration of GSTN with ICEGATE have reduced transaction costs. However, challenges such as inverted duty structure, classification disputes, and occasional refund delays persist.The study concludes that GST has had a net positive impact on India’s foreign trade and recommends policy measures for further strengthening export competitiveness.
Field	Arts
Published In	Volume 8, Issue 4, July-August 2026
Published On	2026-07-14

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International Journal For Multidisciplinary Research