Authors: Assistant Professor Dr. Prathima V, Professor Dr. N Nagaraja
Abstract: One of the major milestones in the indirect tax system of India is the enactment of the Goods and Services Tax (GST) on July 1, 2017. It transformed the tax administration, compliance and economic governance landscape through digitalization. The present study discusses the possibilities of the technology-based governance systems to expedite digital taxation and drive economic transformation with GST. The study is descriptive and analytical research design and only secondary data from government documents from 2017 to 2025, peer-reviewed journals, reports of the GST Council, publications by the Ministry of Finance, bulletins by the RBI and Economic Surveys have been used. Analytical approaches (trend analysis, comparative analysis, percentage evaluation and interpretative assessment) were employed to examine the impact of GST on revenue mobilization, taxpayer expansion, the efficiency of compliance and economic formalization. The analysis revealed the significant impact of GST on enhancing accountability, transparency, and operational efficiency in India's taxation system by leveraging digital platforms such as online registration, electronic return filing, e-way bills, e-invoicing, automatic invoice matching, and centralized monitoring via the GST Network (GSTN). These measures decreased tax evasion, enhanced compliance, and promoted the adoption of digital accounting systems, online payments, and technology enabled financial processes by companies. The survey, however, also identifies some persistent challenges, particularly for Micro, Small and Medium-Sized Enterprises (MSMEs), which include cyber security risks, infrastructure limitations, technical portal disruptions, digital literacy and complexity in compliance.
