The Universal Scholar Journal

Abstract

The Goods and Services Tax (GST) implemented in India from 1 July 2017 is arguably the most comprehensive indirect tax reform by India since independence. GST, launched under the slogan 'One Nation, One Tax', aimed at replacing a fragmented, multi-layered indirect tax regime, which suffered from the cascading effect of tax-on-tax, with a single, destination-based, value-added tax administered jointly by the Union and the States. The paper provides a theoretical review of the conceptual evolution from cascading taxation to GST. It synthesizes post-2017 scholarship on four themes: the constitutional and structural architecture of GST; implications for cooperative fiscal federalism; differential impact on micro, small and medium enterprises (MSMEs); and relationship with revenue performance, economic growth and digital tax administration. The review draws on secondary, peer-reviewed literature, concluding that GST has substantially reduced cascading and unified India’s domestic market, though unresolved issues relating to state fiscal autonomy, compliance burden for smaller firms and revenue volatility continue to shape the reform's trajectory. The paper ends with gaps identified for future empirical enquiry.

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From Cascading Taxes to 'One Nation, One Tax': A Theoretical Review of GST in India