Goods and Services Tax (GST) and its Effect on Textile Traders in Kerala: A Study of Kochi City

Abstract

The introduction of GST is regarded as an important landmark in the history of tax reforms in India and it has brought so many acclaimed advantages like the removal of cascading effects of tax, reduction in transportation time and smooth flow of business activity etc. This new tax was expected to benefit states like Kerala which depends on other states for consumption activities. In the given context, this study tries to understand the effect of GST implementation on textile traders in the Kochi district of Kerala. The study found that majority of the traders were not well prepared for the transition to GST and there was an increased tax compliance after the transition to GST. There was no improvement in the business performance and there was a delay in getting the input credit tax. However, there was a fall in the prices and transport time in the post GST period.