Goods And Services Tax In India Research Articles

Evaluating the Goods and Services Tax (GST) in the Context of Sustainable Development: Case Study of Manufacturing Firms

Objectives: This study aims to examine the impact of the Goods and Services Tax (GST) on the Indian economy, focusing on its effects on compliance, revenue generation, and the challenges faced by small and medium-sized enterprises (SMEs) and the informal sector. Theoretical Framework: The research is grounded in tax reform theories, emphasizing the need for a simplified tax structure and the role of GST in enhancing economic efficiency and formalization of the informal sector. Method: A mixed-method approach was employed, combining a comprehensive literature review with primary data collected through surveys and interviews with stakeholders, including taxpayers, tax consultants, and government officials. Statistical methods, such as regression analysis, were utilized to analyse the data. Results and Discussion: The findings indicate that GST has led to increased government revenue and formalization of the informal sector, although it has also caused short-term disruptions for businesses. The study highlights the necessity for improved GST compliance mechanisms, user-friendly IT infrastructure, and educational initiatives to support SMEs in navigating the complexities of GST. Research Implications: The study underscores the importance of addressing compliance burdens and enhancing the GST framework to foster a more conducive environment for businesses, particularly in the informal sector. It calls for further research on the long-term effects of GST on various economic sectors. Originality/Value: This research contributes to the existing literature by providing empirical insights into the challenges and opportunities presented by GST in India, particularly from the perspective of SMEs and the informal sector, thereby offering valuable recommendations for policymakers and stakeholders.

REVIEW PAPER- “A STUDY ON GOODS AND SERVICES TAX (GST)”

Goods and Services Tax is an indirect tax to support and enhance the economic growth of the country. Most of the Developed countries have implemented Goods and Services Tax Bill (GST). However, in India, GST was established in 1999. A committee was set up to design the model of GST. But GST was re-launched on 1 July 2017 by the Indian government. There was a big hue and cry for its implementation. The GST replaced all the multiple taxes which were taken by state and central government. That is why it is said One Nation One Tax which means there is no need to pay any other tax in all over the country. The study systematically reviews the impact of GST in India. The study provides the bibliometric visualization and sentiment analysis of Goods and Services Tax (GST). It was found that the government’s motive of GST was to bring all the citizens of the nation under the tax and to prevent the flow of black money. The Goods and Services Tax (GST) is a type of indirect tax that has replaced various other indirect taxes in many countries, including India. It is designed to simplify the tax structure and make it more transparent. Instead of multiple taxes at different stages of production and distribution, GST consolidates them into a single tax at the point of consumption.

Impact of goods and services tax (GST) on Indian economy

India has implemented the Goods and Services Tax, an indirect tax, to help and promote the nation’s economic expansion. The Goods and Services Tax Bill has been enacted in the majority of developed nations. In India, GST was established in 1999. A committee was set up to design the model of GST. But GST was re-launched on 1 July 2017 by the Indian government. There was a lot of uproar in favor of its introduction. All of the different taxes levied by the federal and state governments were replaced with the GST. The phrase “One Nation, One Tax” refers to the fact that all taxes must be paid in one location nationwide. The report thoroughly examines the effects of GST in India. The study offers sentiment analysis and bibliometric visualization of GST. It was discovered that the government implemented the GST in order to tax everyone in the nation and stop the flow of illicit money. However, it was noted that many Indian residents’ feelings were conflicted. Therefore, it is advised to review the structure and maintain a focus on ongoing development.

A Study on Goods and Services Tax (GST)

The Goods and Services Tax (GST) is a type of indirect tax that has replaced various other indirect taxes in many countries, including India. It is designed to simplify the tax structure and make it more transparent. Instead of multiple taxes at different stages of production and distribution, GST consolidates them into a single tax at the point of consumption Goods and Services Tax is an indirect tax to support and enhance the economic growth of the country. Most of the Developed countries have implemented Goods and Services Tax Bill (GST). However, in India, GST was established in 1999. A committee was set up to design the model of GST. But GST was re-launched on 1 July 2017 by the Indian government. There was a big hue and cry for its implementation. The GST replaced all the multiple taxes which were taken by state and central government. That is why it is said One Nation One Tax which means there is no need to pay any other tax in all over the country. The study systematically reviews the impact of GST in India. The study provides the bibliometric visualization and sentiment analysis of Goods and Services Tax (GST). It was found that the government’s motive of GST was to bring all the citizens of the nation under the tax and to prevent the flow of black money. But it was observed that lots of Indian citizens’ sentiments were in a dilemma. So it is recommended to revisit the structure and keep a scope of continuous improvement Key Words: GST, Goods and Services Tax (GST), Tax, Goods and Services Tax Bill, Sentiment Analysis

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.

Implication of Goods and Services Tax (GST) in India: An Analysis of Level of Compliance among the Businesses

On 1st July 2017 Goods and Services Tax (GST) was introduced in India with an intention to replace multiple Indirect taxes and to reduce the compliance burden prevailing amongst businesses in India. One of the major factors that will make GST tax law in India successful if there is a high compliance rate towards the filing of returns under the GST act by the businesses. Using secondary data published by the government of India the authors in this paper tries to study the business taxpayers’ level of Compliance towards the GST in India since its rollout. The finding of this research paper will help the policymakers to understand the compliance pattern of the businesses towards GST and will allow them to take the appropriate course of action in near future.

Impact and Challenges of GST in India with Reference to Media & Entertainment Sector – An Insight

The biggest tax reform since independence i.e., Goods and Services Tax (GST) has now become a part of Indian economy from 1st July, 2017. It is a comprehensive indirect tax on manufactures, sales and consumption of goods and services; thereby subsuming almost all other indirect taxes that were in existence throughout India before its implementation and also eliminating the cascading effects thereby. GST was introduced just after demonetisation in November, 2016 and has changed the whole scenario of indirect tax system in India. It aims at boosting overall growth of Indian economy by integrating all indirect taxes into one. The media and entertainment (M&E) industry in India is one of the fastest growing sectors and has outperformed expectations in recent years. With the expansion of the economy, the sector has accelerated its growth. The sector spreads into big and small screens, media, events, exhibitions, amusement facilities and gaming zones, with various combinations of offline and online delivery systems. With the advent of GST, things have become relatively simpler for the entertainment industry as it is subjected to only one tax and permissible local body taxes. One of the major changes has been the subsuming of Entertainment Tax under GST. Earlier, prior to implementation of GST, the rate of Entertainment Tax for the film industry varied from state to state, ranging from 15% to 110%. Introduction of GST has stabilised the rate variance and provided a uniform market across the nation. In this study, we have also made an attempt to study the pre and post GST effects on different activities of the media and entertainment industry like exhibition of movies, food and beverages sold at movie halls, services rendered by artists and other technician, sponsorship and brand promotion and advertisement. Thus, this paper is an endeavour to understand the impact of GST on media and entertainment sector and aims at pointing out the challenges of the same under the present structure and provide some way outs to it.

Impact of Goods and Services Tax on Supply Chain Management

Companies prefer to have their warehouses run in each state before goods and services tax (GST), but after GST whole supply chain phenomenon have changed. The purpose of this study is to address the impact of GST and then see how it affects the wider supply chain management sector. For this conceptual model is adapted and modified from Porter’s value chain model in current GST context. Online convenience sampling survey of 519 respondents from Indian companies which comprised eight different subsectors has been conducted. Partial least square structural equation modeling technique has been used to analyze the data. Findings reveal the empirical significant impact of inbound logistics, supply chain operations and outbound logistics on productivity with GST scenario. In addition, results also established on the moderating role of GST environment on all these direct relationship. This study enriches the knowledge of supply chain operations with the arousal of new tax system GST in India. This research helps managers to understand this new tax system in a better way so that they can adopt this system for enhancing their business performance.

A Study on Impact of Goods and Services Tax (GST) on Cement Industry in India

Cement industry plays a crucial role in the development of an economy. It contributes significantly to the GDP and generates employment. Growing population, increasing scale of economic activities, and growth in the real estate sector have led to a boom in Indian cement industry. Various infrastructural development initiatives of Central and State Government also stimulated demand for cement. Indian cement industry has enormous growth potential. It is attracting FDI through mergers and acquisitions. The synergic effect has resulted in technological advancements and production efficiency in cement industry. Despite of having huge growth potential, the growth of cement industry in India is not satisfactory due to various economic and other policy implications. A high rate of GST is one of the most important factor hindering the growth of cement industry. Cement is placed in the 28% tax slab of GST in India, which is higher than the other developing and developed countries. As individuals use more than 65 percent of cement for housing constuctions, a higher tax rate on cement will adversely affect the marginal sections of the society. Non-availability of Input tax credit (ITC) in construction and real estate sector also a negative impact on the growth of and real estate and cement Industry. GST being a consumption-based tax, the entire tax burden is on end-users. Considering all the factors an attempt is made in this study to analyze the impact of GST on the Cement Industry. It is found that growth in production, consumption, sales and FDI inflows is not satisfactory in Indian cement industry after GST implementation.

The Rollout of GST and its Impact on the Auto Sector Stocks of National Stock Exchange

The most awaited and the biggest indirect tax reform in India – Goods and Services Tax (GST) was finally introduced on July 1, 2017. On contrary to the expectations, the automobile industry had severe hiccups during the latter part of 2018, and experienced negative sales growth and the people were jittery about the process of implementation of GST in India. The present study was dedicated to assess and compare the returns rendered by the auto sector stocks listed in the Indian equity market, pre-and postimplementation of GST in India and to understand the level of volatility in the price behaviour of the selected stocks during the study period. To achieve this, we used the daily closing prices of the constituent stocks of auto sector index of National Stock Exchange for 90 trading days pre and post the execution of GST (from February 20, 2017 – November 9, 2017) and relevantly applied the GARCH family models to understand the existence and extent of symmetric and asymmetric volatility in the auto sector stocks. We found that the implementation of GST in India showed a negative impact on the returns delivered by the auto sector stocks and also found abnormal and heightened volatility during the post GST period.

Trends in affordability of tobacco products before and after the transition to GST in India

ObjectiveTo estimate the trends in affordability of bidis, cigarettes and smokeless tobacco (SLT) in India and examine the impact of transition from the earlier indirect taxation system to the new...

A Study on Growth of Goods and Services Tax (GST) in India - An Golden Opportunity for Growth of Indian Corporate Sectors

The concept of Goods and Service Tax (GST) is one of the biggest revolutions in decades around the world. The main objective of this research is to investigates that the revenue collection of Goods and Service Tax (GST) month wise and its growth. It also examines that total number of 3 (b) and GSTR I return filed in Goods and Service Tax (GST) month, quarter wise and its growth rates as on 30th April, 2019 in India. This study used secondary data. This study used to descriptive statistical tools used such as tables, charts, percentage analysis for analysis and interpretation of data. Inferential statistical tools used such as correlation, paired t test to test various hypotheses of the study. The study period covered since its implementation to as on 30th April, 2019. This results of study indicated that total number of 1,31,88,052 GST tax payer and totally 20,31,884 (Rs in Thousand Crore) collected India as on 30th April, 2019. Out of twenty months positive growth having in eleven month and negative growth having nine months compared with previous month collections. This study finally suggested that government of India, ministry of finance, ministry of commerce and various State/UT governments to take necessary reforms in GST registrations, filing of GST return,payment of tax, refund, interest,penalty and various types GST exemptions different type of tax payers. It is finally concluded that the introduction of GST in India has replaced all indirect taxes in one tax and common market for entire nation it wills bring positive energy for entrepreneurs for staring new business ventures in India.

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.

A Critical Appraisal of Goods and Services Tax in India

The present paper attempts to make a critical appraisal of Goods and Services Tax (GST), implemented in India from 1st July, 2017. In addition to explaining the structure of GST in India as well as the tax rates under it, the present paper attempts to analyse the impact of GST on certain major industries or sectors within the Indian economy. Although GST has certain obvious advantages including exemptions and low compliance burden for small businesses, lower tax rates for mass consumption goods, increase in tax base and tax collections, etc., it is noteworthy, however, that GST has certain limitations as well. In spite of this, it must be accepted that GST has helped in ensuring a common Indian market through the elimination of multiplicity of taxes as well as ‘ tax on tax ‘. It is expected to accelerate economic growth, help generate more of employment opportunities, and lead to increased tax base as well as increased revenue generation

Impact of GST on Indian Economy

GST Stands for Goods and Services Tax (GST). The GST Act was passed in the Lok Sabha on 29th March, 2017 and came into effect from 1st July, 2017. It was termed as One Nation One Tax. The major impact of introducing GST in India is the transformation in the fiscal structure of the Indian federal setup. The fiscal right of the states and centre to deal with goods and services independently will be taken away and both the Governments have to depend on each other’s for managing the so called goods and services tax in future. This is a very hard blow to the freedom of participating governments in the federal system. The perceived benefits are – • GST would eliminate to a large extent, the multiplicity of administrative mechanisms and tax rates across different states. • It removes many of the cascading effects of indirect taxation. • Its positive impact on retail as a whole will make supply chain more cost effective. • It is expected to address most of the complex issues in taxation like software, intangibles, composite contracts etc. and brings more clarity in the levy.

Economic Consequences of GST in India

The research paper focuses on the economic consequences of Goods and Services Tax (GST) personified newly in the Indian Tax structure. The paper also discusses the anticipated barriers and future predictions for GST. The Goods and Services Tax (GST) is a vast notion that simplifies the giant tax structure by supporting and augmenting the economic growth of a country. GST is a comprehensive tax levy on manufacturing, sale and consumption of goods and services at a national level. India’s historic and bold move towards integrated tax structure is viewed by most economists as an answer to regressive indirect tax structure. 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. 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. Another important feature of India's GST rollout is that it is dual-based. In other words, both central and multiple government agencies will release GST separately. The central government will charge CGS T and the state will charge SGST respectively. However, the tax, tax and taxation standards are the same. This is necessary in view of the federal structure of the government if governments are free to manage their own taxes at two levels. GST would help in lesser corruption and increased tax revenue. It contributes towards a better and improved economy with single taxation. The system will make it easier to identify the tax defaulters. In India, GST is imposed on goods and services income. It is expected to iron out wrinkles of existing indirect tax system and play a vital role in growth of India. It is believed that GST would put India’s indirect tax structure at par with more than 140 countries and would be productive for all the sectors. Implementation of such reforms does face surmountable challenges; however this is expected to bring in benefits in the form of higher GDP and also transparency in the tax system. The GST would be imposed on the value – addition and thus would leave lesser scope for tax evasion.

GST - Will It Boost Indian Economy?

India is notorious for its complex tax system. For new businesses and startups, it becomes impossible to navigate through various direct and indirect taxes. Constant changes to taxes like Service Tax are making things even worst. But now, the things are set to change with new Goods and service tax – commonly known as GST. Goods and Services Tax (GST) is an indirect tax which was introduced in India on 1 July 2017 and was applicable throughout India which replaced multiple cascading taxes levied by the central and state governments. It was introduced as The Constitution (One Hundred and First Amendment) Act 2017, following the passage of Constitution 122nd Amendment Bill. The GST is governed by a GST Council and its Chairman is the Finance Minister of India. Under GST, goods and services are taxed at the following rates, 0%, 5%, 12%, 18% and 28%. There is a special rate of 0.25% on rough precious and semi-precious stones and 3% on gold. In addition a cess of 15% or other rates on top of 28% GST applies on few items like aerated drinks, luxury cars and tobacco products. GST was initially proposed to replace a slew of indirect taxes with a unified tax and was therefore set to dramatically reshape the country's 2 trillion dollar economy. The Goods and Services Tax promises to alleviate this problem among many others. It is being hailed as the game changer for India’s economy and is being labelled as the biggest change in the Constitution since India’s independence. The Goods and Services tax or commonly referred to as the GST will replace the indirect taxes levied by the Central and State Governments and provide for a single and streamlined process. It presents India as a unified market to business owners and also aims at bringing a lot of black money back into the mainstream economy. The tax will be implemented at every step of value creation. The rate of GST in India is between double to four times that levied in other countries like Singapore.

STUDY OF FINANCIAL BEHAVIOR OF INDIAN INVESTORS DURING ANNOUNCEMENT OF GST AND VAT

Tax revolution is believed to be welcomed by India. Value Added Tax(VAT) and Goods and Service Tax(GST) are the two GST also known as the Goods and Services Tax is defined as the giant indirect tax structure designed to support and enhance the economic growth of a country. More than 150 countries have implemented GST so far. However, the idea of GST in India was mooted by Vajpayee government in 2000 and the constitutional amendment for the same was passed by the Loksabha on 6th May 2015 but it application is announced recently in 2017.Application of the same has created huge roars among all class of peoples in India resulting in huge hue and cry across nation. It would be interesting to see its actual impact on the mind of Indian investors by studying pre and post 15 days trading strategy on Stock Market Index. Investors thinking results in action of buying and selling on stock market and thus Nifty is considered for study.

An exploratory study on evolution & implementation of gst in india

This paper is a brief description of the historical scenario of Indian taxation and its taxstructure. Then why there is a need for the change in tax structure from traditional system toGST model. Goods and service tax is a new story of VAT which gives a widespread setofffor input tax credit and subsuming many indirect taxes from state and national level.Evolution of GST has be detailed discuss in this paper as the background, silent features,Problems, efforts of government etc. The implementation of a comprehensive GST in India isexpected to lead to efficient allocation of factors of production thus leading to gains in GDPand exports. Though a number of initiatives by the various machineries at the Centre, thepresent taxation regime is marked as cumbersome, complicated and unfriendly. It is in thisperspective, the Central government has entrusted Dr.Vijay Kelkar, Chairman of 13thFinance Commission to suggest a rational, scientific and modern but unified system oftaxation in tune with developed nations form the base behind the introduction of Goods andService Tax (GST) in India.