The introduction of the Goods and Services Tax (GST) in India on July 1, 2017, marked a significant shift in the country’s taxation framework. This comprehensive review examines the impact of GST on Indian businesses by analyzing existing literature, reports, and empirical studies published up to 2024. The review delves into the benefits and challenges brought by GST, such as the simplification of the tax system, the reduction in tax cascading, and the implications for compliance costs. Additionally, the review explores sector-specific impacts, the influence on small and medium enterprises (SMEs), and the broader macroeconomic consequences. The findings indicate that while GST has streamlined the taxation process and contributed to economic formalization, it has also posed challenges, particularly for smaller businesses struggling with compliance and technological adaptation. The review concludes with recommendations for policymakers to further refine the GST framework to enhance its efficiency and inclusivity.