Implementation Of Goods And Services Tax Research Articles

AN ANALYSIS OF GST IMPLEMENTATION AND TRENDS IN REVENUE COLLECTION FROM 2017-18 TO 2023-24

India’s Goods and Services Tax (GST), implemented on July 1, 2017, revolutionized the country's indirect tax system by replacing a complex array of taxes with a unified consumption tax. This study analyzes the implementation, features, and trends of GST from fiscal year 2017-18 to 2023-24, utilizing secondary data from the Economic Survey of India 2023-24. The total GST revenue has shown significant growth, rising from ₹5,39,601 crores in 2017-18 to ₹15,18,127 crores in 2023-24. The GST structure operates under a dual system, with Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) being key components, alongside the Integrated Goods and Services Tax (IGST) for inter-state trade. High-contributing states like Maharashtra and Karnataka have strengthened their positions, while states like Himachal Pradesh and Uttarakhand face challenges. The analysis also reveals fluctuations in revenue due to the COVID-19 pandemic, with a robust recovery in subsequent years. Key findings underscore the need for targeted interventions in lower-performing regions, improvements in tax administration, and policy adjustments to address the declining share of cess. This research highlights the pivotal role of GST in enhancing tax compliance and broadening the tax base, laying the groundwork for sustainable economic growth in India. KEY WORDS: Goods and Services Tax (GST), Tax Compliance, Indirect Taxation, Economic Growth, Public Finance

GST dynamics in India: Exploring state revenue trends, GDP impact, and economic resilience

Since its inception, the Goods and Services Tax (GST) has been established as a pivotal revenue source for both the central and state governments in India. A comprehensive understanding of the evolving role of GST in shaping India's taxation landscape and influencing both central and state fiscal strategies is aimed to be offered by the research. An analysis of GST collections was presented, and variations in states' revenue performance before and after the implementation of GST were discussed in the study. This examination could include how different states adapted to the new tax regime and whether disparities in revenue generation were present. The data of GST collections across states was utilized, and the variation in the average growth of government revenue after the implementation of GST was analyzed. Descriptive statistics, Paired Sample T tests, and Regression were the statistical techniques used for the analysis. The findings of the study indicate a fluctuating trend in India's GST collections, with Maharashtra consistently leading but experiencing a notable decline in FY 2024. The average growth of GST collections shows an increasing trend until 2023, with a decrease in 2024. Paired T test results reveal a significant positive impact on government revenue growth post-GST implementation across all states. The regression analysis underscores a significant relationship between GST and GDP, emphasizing its broad economic influence. Implications include the need for nuanced policy responses to regional variations and consideration of GST dynamics in economic policymaking for sustained positive effects on government revenue growth and economic stability.

Effect of GST on the FMCG Sectors Profitability Position

By comparing the financial data from the three different periods, the study aims to identify any changes or trends that may have occurred in the companies' financial performance following the implementation of GST. This analysis can provide insights into how the implementation of GST has affected businesses in different sectors and can help identify areas where further reforms may be necessary. Overall, this study gives a thorough examination of how the GST has affected the financial results of fifteen Indian corporations. The research intends to offer insights into the short- and long-term effects of GST on firms in various industries by evaluating the data gathered for the pre-GST, post-GST, and present periods. Policymakers, academics, and corporate executives may find the study's conclusions interesting since they offer insightful information on the financial implications of the GST's implementation. A paired t-test can be used to determine if total income before and after the introduction of GST differed significantly. For this test, the null hypothesis (Ho) is that there is no discernible change in total income before and after the introduction of the Goods and Services Tax (GST).

A STUDY ON HOW MICRO, SMALL AND MEDIUM ENTERPRISES IS AFFECTED BY GOODS AND SERVICES TAX.

The goal of the Goods and Services Tax (GST), which went into effect in India on July 1, 2017, was to simplify the tax structure by combining several indirect taxes into one cohesive tax system. The effect of GST on Micro, Small, and Medium-Sized Enterprises (MSMEs) is evaluated in this study. By relieving MSMEs of the hassle of managing several federal and state taxes, the GST system improved their operational efficiency and made tax compliance simpler. Administrative difficulties were decreased via the GSTN interface, which made tax registration and return filing easier. A number of benefits of GST for MSMEs are highlighted by the report, such as the removal of the tax cascade effect, an increase in the threshold exemption for tax registration, better supply chain efficiency, and increased competitiveness. In addition, there have been notable advantages from the formalization of enterprises and the use of technology for tax compliance. But the report also lists difficulties like higher costs associated with GST compliance, more burdensome compliance requirements, problems with cash flow, and difficulties with interstate transactions. This research offers valuable insights into the ways in which MSMEs perceive the impact of GST on their operations, finances, and growth prospects. It employs both qualitative and quantitative methodologies, such as surveys and literature studies. The results imply that, despite the benefits that the Goods and Services Tax (GST) has brought about, MSMEs still face a number of obstacles that require government assistance in the form of streamlined compliance processes and educational materials. All things considered, MSMEs have experienced a mixed response to the implementation of GST, with both noteworthy advantages and difficulties. Maximizing the benefits of this tax reform will need ongoing efforts to improve small business understanding and ease GST compliance.

Impact of GST on Retailers with Reference to Hosur City

Impact of GST on Retailers with Reference to Hosur City

Global Goods and Services Tax: A Macro-Economic Perspective

This article provides a comprehensive analysis of the global implementation of Goods and Services Tax (GST) to understand the diverse GST models adopted and examine their impact on key economic indicators. Through a detailed analysis of GST frameworks in selected countries such as Australia, Canada, India, Maldives, New Zealand and Singapore. The study analyses common trends and differences in tax structures, registration processes and the treatment of exempted goods and services. The findings of the study reveal a consistent pattern of increased tax revenue and GDP growth post-implementation of GST. Additionally, the study explores the impact of GST on trade dynamics, employment levels, foreign direct investment (FDI) inflows and savings rates across these nations. While the impact on inflation varies among the countries. Overall, the findings highlight the importance of well-planned implementation of GST as it is a crucial tax reform contributing to economic growth and stability on a global scale.

GST IMPLEMENTATION IN INDIA: A COMPREHENSIVE ANALYSIS

‘The implementation of the Goods and Services Tax (GST) in India represented a watershed moment in the country's tax reform history. This article gives a thorough examination of the GST implementation process, including its goals, problems, and outcomes. This study assesses the impact of GST on several sectors of the economy, including manufacturing, services, and consumer goods, using a comprehensive analysis of literature, official publications, and statistical data. Key features of the GST structure, tax rates, compliance processes, and technology infrastructure are examined to determine their success in accomplishing the aims of simplifying taxation, boosting economic growth, and supporting fiscal consolidation. This report also looks at how firms, taxpayers, and government agencies have adapted to the GST regime. highlighting both the successes and shortcomings encountered during the transition. By synthesizing existing research and offering insights from diverse perspectives, this paper aims to contribute to a deeper understanding of the GST implementation in India and provide valuable lessons for policymakers, practitioners, and researchers in the field of taxation and public policy.

CORPORATE TAXATION THROUGH THE INDIAN PRISM: CONSEQUENCES OF GST AND DTC

The Indian taxation landscape has witnessed significant reforms in recent years, with the introduction of the Goods and Services Tax (GST) and proposed changes in the form of the Direct Tax Code (DTC). This comprehensive analysis explores the dual facets of these reforms and their consequential impact on corporate taxation in India. The study encompasses a detailed examination of the implications of GST implementation and the potential effects of the impending Direct Tax Code on corporate entities. The Goods and Services Tax (GST) was introduced in India in July 2017, heralding a paradigm shift in the taxation system by replacing multiple indirect taxes. Simultaneously, the Direct Tax Code (DTC) has been proposed as a comprehensive reform of direct taxes, aiming to simplify and rationalize the existing tax structure. This analysis delves into the impact of these reforms on corporate taxation, considering the intricate interplay between indirect and direct taxes. The implementation of GST streamlined the indirect tax system, reducing cascading effects and enhancing overall tax efficiency. This, in turn, has had a direct impact on corporate taxation by simplifying compliance procedures and reducing the burden of multiple taxes on businesses. The analysis explores how these changes have contributed to increased tax compliance among corporate entities. GST introduced the concept of Input Tax Credit (ITC), allowing businesses to offset taxes paid on inputs against their final tax liability. This section assesses how the availability of ITC has influenced cost management for corporations, promoting a more transparent and efficient taxation system. The GST regime prompted corporations to reevaluate their supply chain structures to optimize taximplications. The analysis investigates how companies have adjusted their operations to align with the GST framework, leading to improved logistics, reduced lead times, and cost savings. The proposed Direct Tax Code envisions revisiting tax slabs and rates, potentially altering the corporate tax landscape. This section examines the anticipated impact of changes in tax rates on corporate entities, exploring the implications for businesses of varying sizes and sectors. The DTC proposes a reevaluation of existing tax incentives and deductions. The study analyzes the potential impact on corporate decision-making, investment patterns, and overall economic growth. It delves into the implications for sectors currently benefiting from specific incentives. The DTC aims to align international taxation principles with global standards, impacting the taxation of multinational corporations operating in India. The analysis assesses the potential challenges and opportunities for such entities, considering the implications for transfer pricing and cross-border transactions.

Do companies financially withstand sweeping tax reform?

Tax reform aims to transform how a nation collects or manages taxes. It is frequently conducted to enhance tax administration or to bring economic advantages. Goods and Service Tax (GST) is an indirect tax that replaced many indirect taxes in several nations in the world. Likewise, GST implementation in India was considered positive for the government and the economy. However, its impact on the corporate sector needs to be investigated more. In this study, we investigated the impact of GST on the financials of Indian companies, especially profitability, liquidity, and their relationship. Financial data from 123 companies for ten years (2013 to 2017 — pre-GST; 2018 to 2022 — post-GST) were analyzed using panel regression methods. The parameters examined are operating profit, return on assets, and working capital. The analysis shows that the companies’ operating profit increased after GST implementation, whereas the return on assets decreased. Further, working capital requirements increased after the GST implementation. The impact of GST on operating profits did not significantly differ across sectors. Nevertheless, sectors like metals and mining, information technology (IT), oil and gas, and reality significantly improved return on assets and decreased working capital after GST implementation. The results are helpful to researchers and policymakers considering the differential impact of GST across sectors and thereby ascertain the ability of corporations to financially withstand tax reforms.

Impact of GST on MSMEs: A Critical Assessment of Rajasthan State

Goods and Services Tax (GST) 2017 implement in India with the vision of simple indirect tax structure and enhance economic growth. However, its impact on micro, small and medium enterprises (MSMEs) has been a topic of concern. This critical assessment study focuses on the impact of GST on MSMEs in Rajasthan State (Pareek & Sharma, 2019). The study adopts a mixed-method approach, including a survey of 200 MSMEs and in-depth interviews with 20 industry experts and government officials. The study found that the implementation of GST has resulted in several benefits for MSMEs, such as simplification of tax procedures, increased efficiency in logistics and reduced corruption. However, MSMEs have also faced several challenges such as increased compliance costs, a lack of awareness about GST and issues related to the availability of input tax credit. Indian government must take proactive measures to educate MSMEs about the GST and simplify compliance procedures (Antonyraj & Kumar, 2023). It also recommends that policymakers should revisit the GST structure to make it more MSME-friendly. Overall, this study provides insights into the impact of GST on MSMEs and highlights the need for ongoing assessment and policy reform to ensure the long-term sustainability of these enterprises (Choudhary, 2019).

Assessing the Impact of GST Implementation on Small and Medium Enterprises (SMEs): A Survey-Based Analysis

This research paper aims to investigate the effects of the Goods and Services Tax (GST) on Small and Medium Enterprises (SMEs) in Pune city. The GST, which was introduced with the intent of simplifying the tax structure, has had a significant impact on businesses of all sizes. However, the focus of this study is on SMEs, which often face unique challenges and opportunities concerning GST compliance. Using survey techniques, this research has gathered data from SME owners and operators to understand their perceptions, challenges, and experiences related to GST. The findings of this study are providing valuable insights into the real-world implications of GST on SMEs and are guiding policymakers and business owners in making informed decisions.

Impact of Goods and Services Tax (GST) on Retail Business Productivity

The Goods and Services Tax (GST) was introduced to simplify the tax system by eliminating the cascading effect of multiple taxes, leading to uniform tax rates across states and the creation of a unified market for goods and services. This research aims to investigate how the implementation of GST has impacted the productivity of India’s retail industry. By replacing various indirect taxes, GST streamlined the tax structure and aimed to promote ease of doing business, reduce compliance burdens, and potentially boost productivity in the retail sector. The study examines different aspects, including tax structure, supply chain efficiency, tax evasion, small and medium enterprises (SMEs), tax compliance, and consumer prices, to assess the overall effect of GST on the productivity of the retail business.

A Critical Review of Mechanical and Wear Resistance Characterizations on Developed Aluminium Matrix Composite Reinforced with MgO Particulates

The implementation of GST led to a notable transformation in taxation for different sectors, such as Indian handicrafts, but its contribution to sustainability in this industry requires more investigation. This research aims to uncover and analyze the role of Goods and Services Tax (GST) in promoting sustainability within the Indian handicrafts sector. By utilizing secondary data sources, the study seeks to provide insights into the mechanisms through which GST contributes to sustainable growth and development in this culturally significant industry. Thus, the study reveals how GST helps promote sustainability in the Indian handicrafts sector through various dimensions, including simplifying tax procedures and fostering innovation, emphasizing the strategic significance of GST in supporting sustainable growth. Thus, the study further suggests more future research that could complement these findings with primary data collection to provide a more comprehensive understanding of the practical implications of GST on sustainability within the Indian handicrafts sector.

ASSESSING THE LONG-TERM EFFECTS OF GST ON CHOSEN SECTORS IN THE INDIAN ECONOMY

The Goods and Services Tax (GST) has been a transformative tax reform in India, ushering in a unified and integrated tax structure for goods and services across the nation. This paper delves into the profound and diverse impacts of GST on key sectors, including Automobile, Agriculture, Financial, Infrastructure, and Hospitality. Drawing upon a rich tapestry of literature and quantitative data analysis, the study unveils nuanced sector-specific dynamics. The agriculture sector, following GST implementation, experienced mixed growth rates but showcased remarkable increases in GDP contribution, suggesting significant growth potential. The automobile sector maintained consistent GDP contributions, while the financial sector exhibited steady growth, Although with fluctuations in growth rates. The infrastructure sector faced declining growth rates, reflecting complex interactions with GST and broader economic reforms. The hospitality sector displayed consistent growth rates and an expanding role in the economy. The studys findings underscore the importance of sector-specific responses to GST, highlighting the need for tailored adaptation strategies. Recommendations include enhanced GST awareness and training programs, specialized impact assessment tools, and simplified compliance platforms. This study contributes to a comprehensive understanding of how GST has shaped various sectors, ultimately contributing to Indias economic evolution. KEYWORDS: Goods and Services Tax (GST), Tax Reform, Indian Economy, Sector-Specific Impact, Agriculture Sector, Automobile Sector, Financial Sector, Infrastructure Sector, Hospitality Sector, GDP Contribution, Growth Rates, Capital Investment, Sectoral Resilience, Compliance, Economic Evolution.

Literature Review on Impact of Goods and Services Tax on Consumer Buying Behavior of Fast Moving Consumer Goods in Dakshina Kannada District- An Analytical Study

This literature review aims to explore the impact of Goods and Services Tax (GST) on consumer buying behavior specifically related to Fast-Moving Consumer Goods (FMCG) in Dakshina Kannada district. The study analyzes and synthesizes existing research articles, studies, and reports to understand the changes in consumer buying behavior following the implementation of GST in the region. The current research is based on a positivism research paradigm and a deductive research approach is to be used in order to examine the facts and figures. The descriptive research design will be used because it helps in furnishing a detailed data collection procedure and plan. The study examining the effects of the Goods and Services Tax (GST) on consumer buying behavior regarding Fast-Moving Consumer Goods (FMCG) in Dakshina Kannada District offers valuable insights that can be of practical significance to multiple stakeholders and enhance the growth and effectiveness of the FMCG industry. The study examining the effects of the Goods and Services Tax (GST) on consumer buying behavior regarding Fast-Moving Consumer Goods (FMCG) in Dakshina Kannada District offers valuable insights that can be of practical significance to multiple stakeholders and enhance the growth and effectiveness of the FMCG industry. This study is unique because it focuses on the analytical study on the impact of Goods and Service Tax on consumer buying behavior on of FMCG in Dakshina Kannada District.

A Comparative Study on Contribution of Indirect Tax and GST towards GDP of India: An Empirical Analysis

India has adopted a dual GST which is imposed concurrently by the Centre and States, i.e., Centre and States simultaneously collect tax on goods and services. GST extends to whole of India including the State of Jammu and Kashmir. The Implementation of the Goods and Services Tax (GST) in India was a historical move, as it marked a significant indirect tax reform in the country. The amalgamation of large number of taxes (levied at the central and state level) into single tax is expected to have big advantages. The entire process of GST (from registration to filling returns) made online, and it is super simple. This has been made beneficial for start-ups especially, as they do not have to run from pillar to post to get different registrations such as VAT, excise, and service tax. Earlier, there was Central Excise duty and service tax, each of which had their own returns and compliances. This paper is intended to analyze and identify that is there any significant difference between GST Revenue that is collected by the Government post implementation of GST towards GDP when compared to indirect tax revenue.

Goods and Service Tax and its implications on revenue efficiency of sub-national governments in India: an empirical analysis

PurposeThe purpose of the current study is to examine the implications of the implementation of Goods and Service Tax (GST) on the revenue efficiency of the sub-national governments in India. Furthermore, the study aims to compare the revenue efficiency of the Indian states for the pre-GST and post-GST periods in India.Design/methodology/approachThe study has used the annual revenue of value-added tax (VAT)/GST of the Indian states for the period ranging from 2012–2013 to 2020–2021 for the pre- and post-GST periods. The empirical results are based on the panel regression model for examining the implications of GST adoption on the Indian states.FindingsThe analysis shows that the implementation of GST in India has negatively impacted the revenue efficiency of the Indian states. Moreover, the results affirm that the contribution of the service sector to the state's Net State Domestic Product (NSDP), credit-deposit ratio (CDR) and outstanding net bank credit (ONBC) ratio of schedule commercial banks (SCBs) positively and states' dependency on central transfers (DCT) negatively impact the tax revenue efforts of the state governments. Furthermore, the GST adoption has a greater impact on the revenue efficiency of the minor states in comparison to major states which may widen the inter-state disparity gap as GST revenue constitutes a major share in the Own Tax Revenue (OTR) of the Indian states in aggregate.Practical implicationsThe current study will act as a guide for government, policymakers and for the sitting of the fifteenth finance commission in India for future policy formulation on GST and compensation to the Indian states. Similarly, this study can be used as a base for conducting future studies on the implications of GST at the national, sub-national, and international levels.Originality/valuePrevious studies on the implications of GST are theoretical and conceptual. There is hardly any study at the national or sub-national level that has focused on the implications of GST on the revenue efficiency of the Indian states.

A Study on Business Environment for Retailers on the Implementation of GST

Goods and service tax (GST) is a complete duty on services and goods having an esteem option at various stage with complete and a chain set of advantages from the producer to retailer. The objectives of this study were to determine the viability of GST in the Indian economy and determine benefits of retailers in implementing GST. The study was descriptive in nature and the researcher used convenient sampling technique. Primary data and secondary data were collected for the study. The study helped to know the impact of GST on retailers. The researcher found that retailers have poor knowledge about implementation and laws related to GST. The researcher suggested that government should take initiative to create awareness for retailers and regular updates should be made available to clients on GST related issues.

Awareness and Impact of GST among Small Business Owners: A Study with Special Reference to Mysuru City, Karnataka

GST (Goods and Service tax) is a visionary step intended towards rationalizing the giant indirect tax system in India. The implementation of GST is reducing tax burden and enhancing the ease of doing business in the country. The impact of GST has two key segments weight; one is to the business and second is to the customers who are the actual bearer of tax costs. Indian unorganized sector and portion of industry those who are enjoying the exemption will also contribute significantly to the growth of countries GDP. The basic purpose of conducting the study is to know the awareness level of small businessman towards GST and to assess the actual impact as they are facing. As it is known that impact will be there either on manufacturing or selling but to know the extent of impact and level of satisfaction study is conducted. The study is survey based in which data was collected from 50 business man who are residing in Mysuru city of Karnataka. The tool used for collection of data was structured questionnaire. The results obtained after analysis revealed that businessman are aware about GST implementation and opined that it’s a fair tax system but it requires more clarity, simplification in procedure because they have to depend on CA’s during the online submission. The paper had tried to attempt the actual impact of GST and suggestive measures have also been provided at the end of study. Keywords: GST, GDP, VAT, State Tax, Central Tax, Purchase Tax, Entry Tax.

The Impact of GST Implementation on Small and Medium-sized Enterprises (SMEs)

Goods and Services Tax (GST) introduced in India from July 1, 2017 which replaced multiple indirect taxes levied on goods and services like central excise duty, service tax, VAT, octroi and other local taxes. By subsuming multiple indirect taxes into one, GST also reduced the tax burden on several goods. This paper is to assess the impact of GST implementation on small and medium enterprises (SMEs) in India and identify the key challenges and opportunities for SMEs post the rollout of GST regime in India. Initially majority of SMEs faced an increase in the compliance burden due to GST. The finding underscore that in the long run, the nationwide single market enabled by GST is expected to boost SME competitiveness through opportunities for expansion, reduced inventory costs and ease of doing business.