GST: An Unraveling Force towards India’s Ex-Im

Goods and Services Tax (GST) establishes in India with a soft corner on exports by treating export supply as zero rated supply. On the other hand, imports are treated as inter-state supply under GST regime. The total exports in India have grown by 76.5 percent in seven years of GST. The revenue collection under this tax system on imports has multiplied by 2.5 times in the past seven years. The government also refunded the Integrated Goods and Services Tax (IGST) collected on exports to the sum of ₹1.06 lakh crore between July 2023 and June 2024. This research article examines tax on intra & inter-state supply and tax on domestic & import supply to understand the trend of imports under GST regime. The refund of IGST & Input Tax Credit (ITC) on exported goods are analyzed to examine the trend of export in India. Later, this research article examines the overall imports and exports of India under Pre and Post GST. This new tax system acts as a catalyst for the development of cross border transactions and resilience to the climate changes happening in the globe. It can also evident that the fluctuation in exports and imports are occurs due to COVID – 19 pandemic, geo-political issues, global depression, heavy inflation etc.,. This research article also laid down few difficulties faced by importers and exporters whilst complying with GST law.