📄 Abstract
The evolution of GST 2.0 represents a transformative shift in India’s indirect taxation system driven by digitalisation and efficiency. Using secondary data from 2016–2025, this study evaluates its impact on the digital economy. Regression and Difference-in-Differences analysis confirm that GST reforms significantly enhance digital transactions, transparency, and economic formalisation, while challenges such as compliance burden and digital divide persist. The evolution of the Goods and Services Tax (GST) into its advanced phase, commonly referred to as GST 2.0, represents a transformative shift in India’s indirect taxation system, driven by digitalization, simplification, and enhanced economic efficiency. This study critically evaluates the design, implementation, and impact of GST 2.0 on the digital economy in emerging market contexts, with a particular focus on India. Using secondary data from 2016 to 2025, along with policy reports and analytical frameworks, the paper examines how tax rationalization, digital compliance systems, and real-time data integration influence key sectors such as e-commerce, fintech, and micro, small, and medium enterprises (MSMEs). The study employs regression analysis to assess the relationship between GST reforms and digital transaction growth. The findings indicate that GST 2.0 significantly enhances transparency, promotes digital transactions, and strengthens economic integration by encouraging formalization. However, challenges such as compliance burden, technological constraints, and the digital divide persist, particularly for smaller enterprises. The paper concludes by offering policy recommendations aimed at improving the inclusiveness and effectiveness of digital tax reforms in India and other emerging economies.
🏷️ Keywords
📚 How to Cite:
Vikram Naik Madiraksha, Dr. N. Ganesh Naik , ASSESSING GST 2.0 REFORMS AND THEIR IMPACT ON THE DIGITAL ECONOMY IN EMERGING MARKETS , Volume 13 , Issue 6, June 2026, EPRA International Journal of Economics, Business and Management Studies (EBMS) , Pages: 116 - 122 , DOI: https://doi.org/10.36713/epra28278