Recent GST Reforms in India: An Economic Boost to Growth, Compliance and Revenue

The Goods and Services Tax (GST) represents one of the most comprehensive indirect tax reforms undertaken in India with the objective of creating a unified national market. Since its introduction in 2017, the GST framework has undergone continuous modifications to address operational challenges, enhance compliance, and strengthen revenue performance. In recent years, particularly in the post-pandemic period, the Government of India and the GST Council have introduced several reforms focusing on rate rationalisation, simplification of return filing, expansion of e-invoicing, strengthening of the input tax credit mechanism, and extensive use of digital technology. The present study examines recent GST reforms in India, with special reference to the GST rate rationalisation introduced in September 2025, and analyses their economic impact on growth, compliance behaviour, and revenue mobilisation. The study is based on secondary data collected from government publications, GST Council releases, and published research. The analysis reveals that recent GST reforms have improved affordability, stimulated consumption, enhanced voluntary compliance, and contributed to revenue stability. The paper concludes that GST reforms have evolved as an effective policy instrument for promoting economic growth, transparency, and fiscal sustainability, while also suggesting measures for further strengthening the GST framework.