Post-GST Economic Changes in India: Sectoral Growth and Challenges for Small Businesses

Abstract

The introduction of the Goods and Services Tax (GST) marked a major structural reform in India’s indirect tax system. By replacing multiple central and state taxes with a unified tax framework, GST aimed to simplify taxation, promote formalization, and improve economic efficiency. This chapter examines post-GST economic changes with a specific focus on sectoral growth patterns and the challenges faced by small businesses. The study highlights how GST has influenced manufacturing, services, and trade sectors, while also assessing compliance burdens, digital adaptation, and cost pressures on micro and small enterprises. The chapter concludes that while GST has supported long-term economic integration and transparency, targeted reforms are necessary to ensure inclusive growth for small businesses.