The Second Wave of Tax Reform: Projecting the Long-term Impact of GST 2.0 on India's Growth

Abstract

Goods and Services Tax (GST), implemented in India in July 2017 GST 1.0, was a crucial reform of the indirect tax regime, which was intended to form a single national market, get rid of gushing taxation, and increase economic transparency. Although GST 1.0 has made significant milestones in tax harmonization and revenue collection, it had been criticized as complex to comply with, various tax rates, slow refund turnaround and lack of technological integration. A radical upgrade, the GST 2.0 in 2025, will solve these flaws by using artificial intelligence AI, automation, and streamlined operations. This paper will present an inclusive comparative study of GST 1.0 and GST 2.0, their economic, administrative, and social effects on India. The study based on secondary data of government reports, scholarly literature, and forecasted trends 2018 to 2028 indicates that GST 2.0 does not only increase revenue growth and compliance efficiency but also improves the general wellbeing of the people greatly because of lower prices, quicker refunds, and better formalization. The study concludes that GST 2.0 is a crucial move in the right direction to a fairer, better, and digitally approved fiscal ecosystem, whose impact goes deep into sustainable development and inclusive growth in India.