Year: 2026 | Month: July | Volume: 13 | Issue: 7 | Pages: 397-406
DOI: https://doi.org/10.52403/ijrr.20260741
Impact of GST2.0 on Startups & Entrepreneurial growth in India
Nikita Kumari
Department of Economic Studies & Policy Central University of South Bihar, Gaya ji, India.
ABSTRACT
This research paper analyzes the transformative impact of Goods and Services Tax (GST) reforms on the Start-Up India ecosystem. Using comprehensive secondary data from government publications, industry reports and expert commentary, the study examines how the transition from GST1.0 to GST2.0 has promoted a supportive environment for entrepreneurial ventures. Findings indicate GST 2.0 implementation has significantly reduced compliance burden, improved working capital efficiency, increased investor confidence and democratization of entrepreneurship across Tier-2 and Tier-3 cities. The paper highlights the remarkable growth of India’s startup ecosystem from approximately 500 startups in 2016 to over 2lakh startups at present. including more than 118 unicorns with employment generation accounting to more than 2.19 million jobs. Rate rationalization, correction of inverted duty tax structure, and digital compliance tool adoption has been a crucial driver in promotion of startups in economy. The research findings conclude with concrete specific policy suggestion aimed at further strengthening the nexus between tax administration and startup ecosystem.
Keywords: GST Reforms, Start-Up India, Entrepreneurial Ecosystem, Tax Compliance, Ease of Doing Business, GST 2.0
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