Implementation Of Goods And Services Tax Research Articles

One Nation, One Tax: How the Goods and Services Tax (GST) have Impacted the Indian Economy

GST is a single national uniform tax levied across India on all goods and services. In GST, all Indirect taxes such as excise duty, value-added tax (VAT), etc. will be subsumed under a single regime. Introduction of the Goods and Services Tax (GST) expected as a significant step towards a comprehensive indirect tax reform in the country, which would lead India for its economic growth. The implementation of GST will lead to the reduction in the product prices throughout the business cycle. The country’s taxation system has improved with the help of GST and the government should take more efforts to training and educating public. Necessary modules should be integrated in the education sector related to GST. The Proposed study is designed to know the impact on GST on Indian Economy with the Help of Its individual effect on different sectors. The Study is Exploratory in nature and Secondary Data has been used for the study. The data is collected from different Journals, Periodicals, Newspapers and Internet.

Benefits of Goods & Services Tax and Its Impact on Taxpayers' Satisfaction

Indirect tax is imposed by the government on supply of goods and services. In India, the indirect tax regime has been through major modifications and every taxation system implemented had its benefits over its predecessors. The recent indirect tax regime, that is, Goods and Services Tax (GST) is considered as a major reform in indirect taxation. Implementation of GST considerably improved the taxation system in many regards compared to its predecessors. Taking a note of this, the current study was conducted with an aim to empirically identify the benefits of GST, as perceived by taxpayers, not only in theory, but practically as well, and recognize the impact of these benefits on taxpayers’ satisfaction. Data were collected from respondents of Raipur city with the help of a questionnaire. Factor analysis and path analysis were employed for the purpose of the study. The major benefits identified were Elimination of Multiple Taxes, Lesser Tax Evasion, and Satisfaction & Convenience. Path analysis was used to identify the impact of these benefits, where Satisfaction & Convenience was treated as a dependent variable and Elimination of Multiple Taxes and Lesser Tax Evasion were considered as independent variables. Based on the results and findings, it was concluded that Elimination of Multiple Taxes and Lesser Tax Evasion had a significant impact on satisfaction. This paper helped identify the areas where the taxpayers were satisfied with the implementation of GST and felt benefited because of it.

GST fraud prevention to ensure business sustainability: a Malaysian case study

PurposeThis study provides in-depth explanation of Goods and Services Tax (GST) fraud prevention towards sustainability business.Design/methodology/approachThis study applies a qualitative research method, i.e. case study, to address the specific research objective.FindingsThe finding revealed a GST prevention model towards sustainable business. The finding shows that it is pertinent for the government to set preventive strategies in order to retain sustainable income for the government. Two essential dimensions emerged in the findings to support preventive strategies, namely macro- and micro-level measures.Practical implicationsThe findings of this study provide managers, investors and policymakers with evidence to what extent GST fraud could be minimize in order to safeguard government source of revenue and retain sustainable business in a country. As GST is an important source of revenue for the government, it is thus crucial to prevent fraud from occurring.Originality/valuePast studies have primarily focused on GST implementation from the perspective of service tax effectiveness and efficiency. However, this study examined the impact of GST fraud to determine measures that could ensure service tax sustainability using preventive strategies, in turn, introducing to the existing literature on indirect tax.

Goods and services tax shock on small and medium enterprises working capital in India

Goods and Services Tax (GST) reform introduced by the Indian government in 2017 was considered as the utmost radical and comprehensive indirect tax regime undertaken since independence. The new tax reform had creataed a shock wave among the Indian business houses, especially to the Small and Medium Enterprises short term working capital requirements. This research paper analyzes the working capital constraints created by the implementation of GST on the SMEs. Three research models have been developed by including the major working capital components namely average collection period, average payables period, inventory conversion period and a dummy variable to capture the effect of GST. The mathematical model presented in the paper has been tested using Random effects GLS method. The results of the study reveals that during the sample period the SMEs production capacity had deteriorated, collections and payments were delayed, profit margins were diminished and the credit requirements had escalated. This research outcome will provide an insight to the policymakers and financial institutions in India to implement and revamp strategies that will enable the SMEs to revive from this challenging environment successfully.

Impact Assessment of Goods and Services Tax (GST) on Shopkeepers

India has got a well-structured and simplified taxation system, where authoritative segregation has been done among the Central government, state governments and local bodies. But with the implementation of GST, the harmonization of tax rules, regulations, rates, processes and procedures across the states was expected to improve the ease of doing business in India. The removal of cascading of taxes and transaction costs associated with inter-state transactions was also expected to encourage investment and therefore, the economic growth of country. With the objective of the impact assessment of Goods and Services Tax on shopkeepers the present study was carried out. The study was conducted in Hisar city of Haryana state where the findings highlighted that shopkeepers had highly increased tax burden and legal compliances, followed by increase in workers hiring capacity and no impact on ease of doing business, no loss and transparency in business. Further, results also showed that there was decrease in profit as they have to pay taxes more than 6 times in a year. With the implementation of GST, shopkeepers were having constraint in filing GST as now is getting a complicated process and due to changing GST rates they were facing high competition amongst the market.

GST in Play Alters the Taxation Rules for the Indian Business Game

With the dream to be positioned as the most preferred global destination for investment, Indian Government made one of the most significant reforms in the country’s history in the midnight of June 30, 2017, through the implementation of the new indirect tax regime GST (Goods and Service Tax) from July 1, 2017, after a thirteen-year journey, overcoming many administrative and political hurdles. GST started with a slogan of ‘One Nation, One Market, One Tax’. GST promise to change the manner in which business is carried out and bring a predictable tax regime which is at par with other developed economies. GST is not simply a tax change, but a business change that will affect most functional areas. Each industry needs to understand the impact and opportunities offered by this crucial indirect tax reform. This paper includes the basic changes involved in the taxation structure fundamentals in business.

GST: It’s Impact on Common Man in India

After Independence, Goods and Service Tax (GST) would be a very significant and giant indirect tax structure reforms in the country. It is designed to support and enhance the economic growth of the country. It is a comprehensive tax that will integrate all indirect taxes of states and central governments and the unified economy into a seamless national market. Because of its transparent and self-policing character, it would be easier to administer. According to me, it is expected to iron out wrinkles of the existing indirect tax system and play a vital role in a country’s growth. By amalgamating a large number of Central and State indirect taxes, it would mitigate cascading effect or double taxation in a major way and pave the way for a common national market. So, from a common man or consumer point of view, the biggest advantage would be in terms of reduction in the overall tax burden on goods, which was estimated to be around 25%-30% before the implementation of GST. This paper highlights the concept of GST and its impact on the common man.

Does GST (Goods and Services Tax) A Game Changer For Indian Auto Companies’ Share Return ? (Event Study Analysis)

The Indian auto industry is one of the largest in the world. The industry accounts for 7.1% of the country's Gross Domestic Product (GDP). Almost 13% of the revenue from central excise is from this sector and claims a size of 4.3% of total exports from India. Despite its contribution to the economy and growth potential, this sector has been combating the hardship of high tax rates for substantially a long period of time now with central excise duty ranging between 12.5% to 30% coupled with introduction of multiple cesses at revenues whims and fancies, most recent being infrastructure cess. The present study focuses on “A Study of Impact of Goods & Services Tax (GST) on Shares return of Indian Auto Companies”. This study aims to find the reaction of Indian Auto Companies Share return with respect to the announcement of GST rates and also tries to test efficiency of the stock market. The performance of stock market and its behavior serves as an indicator of the reactions of the economy of the nation. The Goods and Services Tax is a major tax reform in India which is most likely to boost the economic growth of the country. This expectation of the investors is assumed to be transformed to stock price returns that are either negative or positive. So for GST impact is concerned, here Daily, Monthly and Yearly, pre and post GST implementation share return is taken and different statistical tools applied to find impact of GST n these returns.

A Comprehensive Analysis Of Goods And Services Tax (GST) In India

The Goods and Services Tax (GST), implemented on July 1, 2017, is regarded as a major taxation reform till date implemented in India since independence in 1947. GST was planned to be implemented in April 2010, but was postponed due to political issues and conflicting interest of stakeholders. It is a comprehensive tax system that will subsume all indirect taxes of states and central governments and unified economy into a seamless national market. The primary objective behind development of GST is to subsume all sorts of indirect taxes in India like Central Excise Tax, VAT/Sales Tax, Service tax, etc. and implement one taxation system in India. The GST based taxation system brings more transparency in taxation system and increases GDP rate from 1% to 2% and reduces tax theft and corruption in country. The paper highlighted the background of the taxation system, the GST concept along with significant working, comparison of Indian GST taxation system rates with other world economies, and also presented in-depth coverage regarding advantages to various sectors of the Indian economy after levying GST and outlined some challenges of GST implementation.

The Impact of Goods and Services Tax (GST) on Fast Moving Consumer Goods (FMCG) Consumers with respect of Personal care Products

Goods and Service Tax (GST) is an indirect tax which is levied on the purchases of goods and services. The tax is levied at each level of production and distribution process until goods delivered to final consumers. Therefore, GST helps to detect tax evasion easily. Despite of benefits, certain drawbacks are occurred due to the introduction of GST. Hence, this study has investigated the impact of tax reforms with reference to GST (Goods and Services Tax) on FMCG consumers. Primary data was considered for this study. For collecting the data questionnaire was framed and distributed among 400 respondents. The data analysis reviled that 60% of the respondents strongly agreed that after implementation of GST affects the spending behavior and 59% of the respondents strongly agreed that GST has a negative impact on the price of personal care product. Hence, this study provides the information about the impact of Goods and Services Tax (GST) on fast moving consumer goods with respect to personal care products targeting lower income people and lower-middle-income people.

Goods and Services Tax (GST) reforms and implementation : An economic analysis in the marine fisheries sector of Kerala, South India

Goods and services tax (GST), hailed as a historic tax reform, is a step taken by Government of India to improve transparency and accountability in the taxation system of our country. The fisheries sector is also expected to have a varied impact consequent to the introduction of these reforms. The present study assessed the level of awareness and perception of impact of GST and to estimate the additional cost per annum in marine capture fisheries sector of Kerala due to implementation of GST and also to highlight the possible positive effects of inclusion of diesel price under GST. The study was undertaken in the fish landing centers/harbours of Alappuzha and Ernakulam districts of Kerala, south India aimed at measuring the extent of uncertainty generated by introduction of GST. The study revealed that the implementation came as a complete bolt from the blue with majority of the fishers in disagreement with the process of implementation of GST without taking all stakeholders into confidence. Compared to value added tax (VAT), the GST and post-Guwahati Council GST rates are found to be high, affecting the fishing community at multidimensional levels. The results revealed that the marine capture fishing operations across all sectors in Kerala will be incurring an additional cost of `171.25 million per year due to GST introduction. However introducing GST on fuels will lead to a reduction of diesel price by 30-40% and 25-30% at 18 and 28% GST slabs respectively, which would reduce the ever increasing cost of fishing. The study also advocates that the implementation of GST in fuel prices should not add to overexploitation of the already dwindling fisheries resources.

Estimated impact of the GST on tobacco products in India

ObjectiveTo examine the potential impact of the goods and services tax (GST) on price, consumption and tax revenue from tobacco products in India and across states.MethodsData on prices, tax rates...

Impact of GST on the Exports of Carpets & Floorings Industry in India

This paper focuses on the impact of goods & service tax on the exports of Indian carpets & floorings industry. The GST has not only provided full set off for input tax but also abolished the burden of several existing taxes viz Central Excise Tax, VAT/Sales Tax, Service tax etc. There are many ambiguities about the post GST implementation effect. This study is an attempt to find out the significant impact of GST on the average exports of Carpets & floorings industry for Pre & post two consecutive years. Paired t-test analysis is applied on the data using SPSS Software and results are derived. It is crucial to find out the potentiality and practicability of the transition from VAT to GST (Goods and Service tax). Hence, this study assumes greater significance for academicians and policymakers.

Constructing the Computable General Equilibrium (CGE) To Analyse the Impact of Goods and Services Tax (GST) on Government Revenue and Targeted Household of M40 and B40 in Malaysia

Computable general equilibrium (CGE) models have been widely used in economic policy analysis in recent years. The selection of the model is based on the CGE model’s ability to see the effects on sectors, household groups, governments, and even able to see the overall economic impact for a time period. In Malaysia, the issues arise from the impact of policies analysed in the CGE modelling framework have been constrained in part by the completion of a Social Accounting Matrix (SAM). The main purpose of this paper is to propose a new Malaysian CGE model framework to analyse the impact of implementation of GST on government revenue and welfare of targeted household groups of B40 and M40 in Malaysia. The CGE model developed in the present paper is based on more recent data in Malaysian SAM (2014). Then the data was modified to suit with Malaysian CGE for GST, namely the MYGST_CGE model. This paper describes the structure of MYGST_CGE, with 33 activities, 33 commodities, 7 types of labour, and 7 categories of household groups were constructed. The CGE utilized in the present study can be applied to answer questions concerning whether GST implementation would have the trade-off between government revenue and the targeted groups by taking into account the elements of GST such as standard-rate, zero-rate and exempted rate. For the purpose of policy analysis, simulation exercises are conducted using the multi-sectoral, multi-factorial and multi-households approach. Based on the proposed framework model review, the instruments used for measurement of effectiveness and welfare were C-efficiency ratio, regressive, progressive, equivalent variation and simulations. The paper will give an opportunity for future research work in a related area.

Analysis of barriers in implementation of Goods and Service Tax (GST) in India using interpretive structural modelling (ISM) approach

Goods and Service Tax (GST), a destination-based unified taxation system, was implemented on 1st July 2017 in India replacing 17 different indirect taxes with the vision to create a seamless common market. A country like India, with the population of over 1.3 billion and heterogeneous distribution of wealth having a federal structure, opted for six different tax slab and dual-GST structure. In some countries, GST has been successful but in others, it has failed. We have attempted to investigate the barriers to the smooth implementation of GST. In this paper, we have identified 12 barriers to GST implementation. Using interpretive structural modelling (ISM), this study finds the driving and dependence nature of different barriers to develop a structural model. The results of analysis found that lack of skilled manpower, lack of clarity of GST provisions, political unwillingness, and lack of policy for proper division of tax are the major barriers in the implementation of GST. In addition to the above analysis, MICMAC analysis is utilized to cluster the barriers in four categories as per their relative driving and dependence powers.

The impact of GST implementation on the Malaysian stock market index volatility

Purpose The purpose of this paper is to examine the impact of the Goods and Service Tax (GST) implementation on Malaysian stock market index. Design/methodology/approach This study used daily closing prices of the Malaysian stock index and futures markets for the period ranging from June 2009 to November 2016. Empirical estimation is based on the generalised autoregressive conditional heteroscedasticity (1, 1) model for pre- and post-announcement of the GST. Findings Result shows that volatility of Malaysian stock market index increases in the post-announcement than in the pre-announcement of the GST which indicates that educative programs employed by the government before the GST announcement did not yield meaningful result. The volatility of the Malaysian stock market index is persistent during the GST announcement and highly persistent after the implementation. Noticeable increase in post-announcement is in support with the expectation of the market about GST policy in Malaysia. Practical implications The finding of this study is consistent with expectation of the market that GST policy will increase the price of the goods and services and might reduce standard of living. This is supported by a noticeable increase in the volatility of the Malaysian stock market index in the post-announcement of GST which is empirically shown during the announcement and after the implementation of GST. Although the GST announcement could be classified as a scheduled announcement, unwillingness to accept the policy prevails in the market as shown by the increase in the market volatility. Originality/value Past studies on Malaysian stock market index volatility focus on the impact of Asian and global financial crisis whereas this study examines the impact of the GST announcement and implementation on the volatility of the Malaysian stock market index.

Analysis of Impact of Goods and Services Tax on Indirect Taxes of Karnataka State

Socio-economic development of a country depends on the effectiveness of its taxation system. Taxation policies of many countries are undergoing significant change in the winds of globalisation. To cope up with the emerging challenges of globalisation and digitalisation, the taxation policy needs to adapt to reduce the burden on taxpayers and increase the tax base. India has undergone many tax reforms since independence to make the taxation system comprehensive, unique, transparent, simple and broad based. Towards achieving the said objectives, India took the milestone step to introduce Goods and Services Tax (GST), which is considered as a landmark reform in indirect tax regime. GST brought goods and services under one tax net and provided less scope for evasion of taxes. GST is a destination-based consumption tax with the revenue-sharing mechanism between the centre and the states. It ensures that tax revenue is to be attributable to the state in which consumption takes place. This principle, in turn, affected manufacturing states’ (origin states) exchequers. The centre agreed to compensate states on account of the loss of revenues, due to roll out of GST, for first 5 years, with the projected annual growth rate of 14 per cent on a bimonthly basis, keeping 2015–2016 as a base year. An attempt is made in this study to ascertain the current position of tax collections of Karnataka state after 2.5 years of implementation of GST. It is found from the study that registrations, return filing and tax collections are increasing in the GST regime. But there is a delay in providing compensation to states. It will affect the spending of state governments on various welfare activities.

Whether States Have Capacity to Sustain Projected Growth in GST Collection During the GST Compensation Period?

Achieving harmonisation in design, structure and administration of taxes on goods and services was the major driving force behind the introduction of goods and services tax (GST) in India. Goods and services tax subsumes many taxes from both union and state tax bases. Achieving tax harmonisation in a federal system curtails fiscal autonomy of both the union and sub-national governments and therefore faces steep resistance. Revenue uncertainty associated with any tax reform is a major cause for concern for all governments and therefore the assurance of revenue protection given by the union government to states helped to achieve broad consensus in favour of GST. On average, state taxes subsumed under the GST used to contribute two-third of own tax revenue and finance one-third of total expenditure for general category states. Unlike the union government, states have limited taxation power (tax handles) to generate additional revenue to cope up with any major revenue shortfall on account of GST collection. Therefore, the revenue protection enshrined under the GST Compensation Act has played an important role behind introduction of GST in India. This has also helped the GST Council to experiment with design, structure and administration of GST during the GST compensation period (first 5 years of GST implementation) to moderate the impact of GST on Indian economy as well as facilitate ease of tax compliance. Given the ongoing shortfall in GST collection, many scholars believe that liberal GST revenue protection granted under the GST Compensation Act to states is unjustifiable. The GST compensation period will be over by June 2022, and thereafter GST collection of individual states is expected to depend on their tax capacity as well as tax effort. It is worthy to investigate whether states have tax capacity to sustain 14 per cent growth rate in tax collection, as projected in the GST Compensation Act. The objective of this article is to estimate tax capacity of the states with reference to major tax revenue subsumed under GST and see whether states could sustain 14 per cent growth in their GST collection during the GST compensation period if they put adequate tax effort. JEL Classification: H21, H68, H71, H77

Public Awareness, Knowledge and Understanding of GST in India

The Goods and Services tax (GST) is one of the most discussed topic in India nowadays. The Indian Government decision to implement the GST on 1st July 2017 has affected every member in the country. Financial issues such as inflation, rising cost of living, economic instability and the implementation of GST have impacted many Indian consumers in terms of their spending. However, the government has undertaken various efforts to study the effect and impact, to disseminate the information, to educate the public and to improve their understanding on the need of GST in taxation system. Even so at the early stage of implementation the public appears to be confused on the actual operations of the GST system. Many questions and complaints have been reported and lost to the related authorities for further action. This incident raises questions on the level of awareness and knowledge of the people about GST. To get a clearer picture on the degree of public awareness, knowledge and understanding of GST, a study pays specific focus on these areas is necessary and this study aims to review the consumer's awareness towards the implementation of GST in India.

Impact of GST on FMCG Sector in India

Goods and services tax (GST) is the biggest tax reform in Indian tax system. It includes excise tax, service tax, central sales tax, luxury tax, lottery tax, entertainment tax, octroi, state surcharge, and other surcharge on supply of goods and services. The GST replaced various multiple indirect taxes which were imposed on unlike items of goods and services. The GST helped in increasing central government revenue from past nine months, since GST has been introduced (1st of July, 2017) and solved the problem of “cascading effect” of tax. GST has emerged as “transparent taxation system” in the indirect taxation. Although GST will be more effective in coming future but presently it may not be free from constraints. The research paper will focus on framework of GST as well as Impact of GST on Fast Moving Consumer Goods (FMCG) Sector in India. After implementation of GST, FMCG Sector improved slightly as GST eliminated multiple-tax system.