This paper analyzed the impact of GST on Indian Economy. GST is a comparative tax levy for the public of India. It is one of the biggest tax reforms in India. Businessman, producers, companies pay indirect tax like vat, service tax, sales tax, entertainment tax, octroi and luxury tax etc. With introduction of GST, all these taxes would cease to exist. These would be only one tax that too at national level, monitored by the central Govt. GST is different from other taxes. It is levied at final point of consumption and not at manufacturing stage. At current times, separate tax rate on applied to goods and services. Under GST, there would be only one tax rate for both goods and services. GST would give India a world class tax system and it also helps to improve tax collection. GST also help to contact control black money. GST also helps to create a business friendly environment as prices and inflation rates would come down. It also improve government's fiscal heal as the tax collection system would become more transparent. This paper is an attempt to study the concept of GST and its impact on Indian Economy. The study also aims to know the advantages and challenges of GST in Indian scenario.