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Next-Generation GST Reforms in India: A Study on Tax Rationalization and its Socio-Economic Impact

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Author Affiliations

  • 1Department of Management, Janata Shikshan Sangha’s Shree Tammannappa Chikkodi Arts and Commerce College, Banahatti.Karnataka, India
  • 2Department of Commerce & Management, BLDE Association Commerce, BHS Arts and TGP Science College, Jamkhandi, Karnataka, India

Res. J. Management Sci., Volume 15, Issue (2), Pages 29-33, May,6 (2026)

Abstract

Goods and Services Tax (GST) in India was a historic reform that was introduced in 2017 to establish a single and simplified system of indirect taxes. With time, the necessity to refine it further resulted in Next-Generation GST reforms, which revolve around tax rationalization and improved socio-economic outcomes. This paper will discuss the effects of these reforms, especially as regards to sectoral tax cuts, and procedural reforms. The study examines how low GST on basic commodities, farm inputs, health services, learning materials, cars, and electrical appliances has led to better affordability and consumption. Particular attention is given to rural and agricultural sectors, where input costs have been reduced, which increased productivity and profitability. The study also assesses how the GST reforms contribute to the achievement of inclusive growth through alleviating the financial strain on households and facilitating the growth of small and medium enterprises. Procedural reforms, including simplified registration procedures, accelerated refund systems, which have increased ease of doing business and enhanced liquidity to business entities, are also highlighted in this paper. All these transformations help in making the economy more competitive, more investment and creation of jobs. Nevertheless, the research also recognizes such issues as the changes in rates frequently, digital barrier to compliance and gaps in the implementation, especially in the rural settings. The results are that although Next-Generation GST reforms have been very effective in enhancing the efficiency of the economy and social welfare, there is a need to sustain these policy reforms over time, create awareness, and develop infrastructure to maximize the effects of the reforms in the long-run.

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