The ancillary industry sector has arisen over the period years as a very vivacious and self-motivated sector of the economy. It adds to current for nearly 35 per-cent of the gross value of output of the manufacturing segment and over 40 percent of the total exports in the country. Goods and Service Tax (GST) is a major recent tax reform implemented in India to bring in the ‘one nation-one tax’ system, but lamentably this recent tax reformation into GST had both sweet and sour brunt from various segments of business societies of India. Under the system of GST tax is levied at the final level of consumption and not at the manufacturing level. The research paper focuses on the outset of goods and service tax and its consequences on the Indian Economy. Present study is an attempt to portray the clear picture of challenges and benefits of GST in India. It will help to reduce the corruption which in return will give boost to the economic growth of the country. GST shall further open multiple avenues for the employment, which in return will help in strengthening the GDP of country. An important feature of GST is that products and services are equalized and are taxed at a fixed rate until customers access it within the supply chain. Therefore, tax reforms give equal rights to large and small businesses and taxpayers.  Productive aspects can draw in a better picture in Indian economy exhaling pessimistic aspects. In order to measure the impact of the GST nation necessitate some time for waiting while consequently Government needs to provide learning and training of the new Tax regime systems in every part of country. We all should keep our fingers crossed that when GST will be fully functional and successful it may act as an excellent system to shrink the black money and may be counted as an astonishing initiative by the Government of India subsequent to the Demonetization of the currency in 2016.

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Keywords: GST, Taxation, Ancillary Industry, Boon, Bane, Benefits.