Goods And Services Tax Research Articles

GST Impact: Perspectives from Registered Traders’ in District Kangra, Himachal Pradesh

This research paper evaluates traders' perceptions of the Goods and Services Tax (GST) and its impact on business operations in District Kangra, Himachal Pradesh. A structured questionnaire was utilized to conduct a comprehensive survey involving four hundred respondents. The focus was on key aspects such as tax simplification, interstate and intrastate trade, pricing strategies, profit margins, transparency in tax collection, and accounting processes. The findings reveal a generally positive perception of GST, particularly in terms of its role in simplifying taxation and enhancing trade efficiency. However, challenges remain, especially concerning compliance issues and fluctuations in profit margins. To improve trader experiences, the study recommends targeted training programs, streamlined compliance processes, and the establishment of effective feedback mechanisms. These insights contribute to a deeper understanding of the real-world impact of GST on business operations and highlight essential areas for future improvement, underscoring the need for continuous support in adapting to the evolving tax landscape.

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

Recent Changes in Income Tax and GST: Implications for Commerce

The landscape of taxation in India has undergone significant changes in recent years, particularly in the areas of Income Tax and Goods and Services Tax (GST). This paper examines the latest amendments in both these areas, focusing on their impact on businesses and commerce in India. The Income Tax reforms introduced in the Finance Act 2023 aim to simplify the tax structure and enhance compliance, while GST amendments focus on addressing loopholes and improving the efficiency of tax administration. This study explores these changes in detail, their expected effects on businesses, and the broader economic implications for the Indian commerce sector.

Role of Technology in GST Compliance in India

This study examines how technology and Goods and Services Tax (GST) compliance work together to achieve certain goals. It highlights the various strategies used by countries while assessing the different efficacy of contemporary technology solutions in achieving worldwide GST compliance. According to the report, there is a direct benefit to taxpayers and authorities when sophisticated technical solutions are paired with efficient compliance procedures—issues with using technology to channel compliance and analyze the need for customized approaches. The study's novel suggestions for maximizing the cooperation of technology and GST compliance are presented in the conclusion, providing insightful analysis of the dynamic environment and building resilience in the face of rapidly advancing global technology.

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.

Building the Empirical Puzzle on Impact of Macroeconomic Determinants on GST Revenue: An Empirical Investigation via ARDL Bound Test Perspective

ABSTRACTThe revenue mobilization remains a challenge for many countries, especially developing countries such as India. Therefore, this study explores the macroeconomic determinants of Goods and Service Tax (GST) revenue of the government in India as GST constitutes a major share in the Own Tax Revenue (OTR) of the government in India. The current study has employed the Auto Regressive Distributed Lag (ARDL) model to examine the macroeconomic determinants of GST taxation revenue of the government in India. The results reveal that foreign direct investment, depreciation in the exchange rate and foreign exchange reserves have a favorable impact on the GST revenue of the government in India. Furthermore, the gross fiscal deficits of the government and inflation have a detrimental effect on the GST revenue collection of the government in India. The results of the study are supported by the Tanzi effect and the Tanzi–Olivera effect for the detrimental effect of inflation and gross fiscal deficit on the GST revenue of the government in India. The current study has major policy implications for the government, policymakers, and researchers. The empirical results illustrates that the government may put a stringent check on inflation and gross fiscal deficit of the country to improve their GST collections. Moreover, the government should try to focus on foreign direct investment, trade openness, and foreign exchange reserve in India to increase their GST revenue. Meanwhile, the current study can be used as a base for conducting future studies at national and international levels for examining the determinants of other taxation revenue of the government by incorporating other country specific variables. This study may act as a novel contribution to the available literature on the macroeconomic determinants of taxation revenue in India. To the knowledge, it will be the first study in India to especially explore the determinants of GST revenue of the government in India. However, the findings of the study need to be generalize in future by incorporating a larger sample size as GST is still in its introductory phase in India.

An Overview of Goods and Services Tax (GST) in India

An Overview of Goods and Services Tax (GST) in India

GST: A Catalyst or Constraint for Indian Economic Growth?

Goods and Services Tax (GST) is a comprehensive indirect tax system designed to streamline taxation and boost economic growth. Over 150 nations have successfully implemented GST. In India, the concept was introduced in 2000 by the Vajpayee government. While the Lok Sabha approved the constitutional amendment for GST in 2015, its implementation has been met with significant opposition. This paper aims to explore the potential negative impacts of GST on the Indian economy and analyze the reasons behind the widespread resistance to its adoption.

TAX BUOYANCY IN MAJOR STATES IN INDIA

In the world of fiscal policy, tax elasticity and buoyancy are crucial factors shaping a country's financial health. Tax elasticity measures how much tax revenue changes when national income shifts, showing how flexible the tax system is naturally, without deliberate policy changes. This flexibility helps stabilize revenue, reducing the need for constant tweaking of tax policies. On the other hand, tax buoyancy reflects how tax revenue responds to economic shifts and intentional changes in tax policies. It acts like a gauge, indicating how effectively taxes adjust to economic ups and downs and how well policy decisions influence revenue. Low buoyancy suggests that there might be flaws in the tax system, prompting policymakers to rethink and improve tax strategies to better fit economic realities. For a country like India, where tax revenues are essential for financing public spending, understanding these metrics is critical. The buoyancy coefficient compares the growth of actual tax revenue to national income growth, providing insights into how successful fiscal policies are in boosting tax revenues. Meanwhile, the elasticity coefficient shows how responsive the tax system is to changes in national income, revealing its potential to generate more revenue as the economy grows. Analyzing these metrics gives policymakers a detailed view of fiscal sustainability and economic stability. It helps them make informed decisions when designing tax policies, ensuring that the government can maximize revenue while allowing the tax system to adapt smoothly to economic changes. A balanced approach that considers both elasticity and buoyancy is key for India's fiscal strategy, ensuring a well-coordinated financial performance that aligns with national economic goals. KEYWORDS :- Tax Buoyancy, Tax Elasticity, Fiscal Policy, Tax Revenue, NITI Aayog, RBI (Reserve Bank of India), VAT (Value Added Tax), GST (Goods and Services Tax).

Improving Sustainable Financing for Universal Health Coverage in Bhutan: Exploring Policy Options and Financial Strategies

AbstractDeeply rooted in its developmental philosophy of gross national happiness (GNH), Bhutan's healthcare system strives towards achieving a shared goal of universal health coverage (UHC). Despite being primarily financed by the government, the health system faces a plethora of challenges. To overcome these hurdles and achieve UHC goals, expanding the fiscal space for health and improving operational efficiency are crucial. This article aims to address Bhutan's evolving healthcare landscape and advance the achievement of UHC through two policy options. The first policy option focuses on the dual objective of improving health outcomes and promoting financial sustainability by leveraging health taxes, whereas the second option emphasizes reinforcing a systematic health technology assessment (HTA) in the Bhutanese health system. First, drawing lessons from global experiences, the policy brief recommends leveraging health taxes to reduce societal and healthcare costs and enhance financial sustainability in the health sector. Considering Bhutan's high prevalence of tobacco and alcohol consumption, and taking opportunity from the ongoing Goods and Services Tax (GST) reform, continued advocacy on health taxes is essential, and soft earmarking the health taxes may be considered to finance a broader array of public health programmes, particularly focusing on the promotion of healthy lifestyle, health screening and outreach public health activities. Second, the integration of HTA into policymaking and decision‐making processes is essential for effective resource allocation in UHC. Nurturing and strengthening the existing HTA governance structure under the Ministry of Health (MoH) and establishing a dedicated multidisciplinary HTA Committee will ensure informed decision‐making and resource optimization. HTA evidence should inform the revision of health service standards, clinical guidelines development, procurement decisions and healthcare priorities. These policy options can assist the country in improving financial sustainability, enhancing effective resource allocation and utilization and improving healthcare delivery, aligning with its vision of GNH and ultimately accelerating progress towards achieving UHC.

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.

INVITED PAPER — INTER-GENERATIONAL IMPACTS OF SINGAPORE’S BUDGETARY RESPONSES TO COVID-19: GENERATIONAL ACCOUNTING FRAMEWORK

Singapore’s rapidly aging population poses significant challenges to the government’s long-term fiscal sustainability as it structurally affects government revenue and expenditure. Amidst the demographic trends, total government spending has skyrocketed to unprecedented amounts in 2020 in response to the COVID-19 pandemic. This paper evaluates Singapore’s fiscal sustainability and intergenerational fiscal impacts through the lens of generational accounting and actuarial analyses, before and after COVID-19. Our model predicts a pre-COVID absolute intergenerational gap of S$512 thousand between future generations and current newborns, implying that there is considerable intergenerational inequity. This gap increases by a further S$67 thousand after factoring in COVID-19’s impact on government net spending and short-term fertility rates. Fiscal balance can be restored in the short term and intergenerational equity in the long term, after incorporating key policy changes such as Goods and Services Tax (GST) hike and carbon tax increases.

Indirect Tax Reform And Market Efficiency: An Empirical Study of Indian Stock Market

The biggest tax reform of the Indian Government in this present decade is the Goods and Services Tax (GST), which was passed in parliament on 8th September 2016 and was enforced from 1st July 2017. Eight years of data from the Bombay Stock Exchange Sensex and the National Stock Exchange Nifty50 index is studied. The data is divided into two sub-periods before GST was passed from parliament period - I and after GST was passed from the parliament of India period - II. The study intends to test the market efficiency in its weak form. To check the time series data for normality, stationarity, random walk, and autocorrelation function, Kolmogorov-Smirnov (KS) test, Augmented Dickey-Fuller (ADF) test, Phillips Perron (PP) test is used for the analyse of the time-series data. The study found that returns are not normally distributed and the market is inefficient in a weak form for both periods under study.

Financial Technology for the Sustainable Development

The Sustainable Development Goals (SDGs) are the critical goals for every country in the world. A stable global financial system is needed these days to satisfy its duty to boost private capital mobilization to achieve sustainable development and steady economic growth. However, several obstacles limiting such financial mobilization have been identified by scholars, practitioners, and standard setters. In recent times digital transformation and advancement, specifically in the finance sector, include a wide range of technological developments, and applications such as blockchain, the Internet of things, big data, and artificial intelligence are promised to enhance performance in the financial sector. The potential of digital applications in the finance sector to resolve critical obstacles in financing for inclusive and sustainable growth becomes evident. Financial inclusion is indisputably one of the most significant processes towards achieving the Sustainable Development Goals and FinTech is one of the best methods for these goals to be accomplished. The Fintech industry in India is rapidly expanding and the purpose of this paper is to discuss issues such as fintech drivers, shortcomings of traditional financial services, and the role of technological advancement. The paper also addresses issues relating to fintech investment and disturbance. Financial technology faces challenges such as investment management, customer management, and regulation. The paper examines the evolution of fintech in the banking sector over time. But as we are aware a country like India lacks proper infrastructure and management and the objectives of banking can’t not be attained easily. All the issues and challenges faced by the government and financial institutions have been discussed in this paper along with the important and different strategies adopted by them. The study is based on secondary data and a literature review. India has surpassed the global fintech adoption rate to promote financial transactions with the help of technology. Demonetisation and implementation of the GST (goods and services tax) have also played a major role in the adoption of financial technologies among the masses. Also, the announcement made by the government in 2017 to decrease the amount of paper currency in circulation has elevated its awareness. Blockchain is another financial technology that is being used in the industry. Out of the total “fintech” technologies, blockchain was developed for finance which is directly connected to financial institutions. The main aim of Blockchain in financial services is decentralization where we do not trust a third party to execute transactions. It includes services such as transferring funds between banks and companies. While trading in capital markets, innovative electronic trading platforms facilitate online trade and real-time transfers. Trading networks allow investors to observe the trading behavior of their peers and expert traders and to follow their investment strategies on currency exchange and capital markets. These platforms require either very little or no knowledge about financial markets. An automated financial advisor provides financial advice or online investment management with moderate minimal human intervention.

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).

An Empirical Study on Impact of Goods and Services Tax (GST) on Customers’ Perception in Rajkot District

An Empirical Study on Impact of Goods and Services Tax (GST) on Customers’ Perception in Rajkot District

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.

Awareness and Impacts of Goods and Services Tax on Indian Economy

The Goods and Services Tax (GST) is a big change in how taxes work in India. Instead of having lots of different taxes, GST puts them all together under one single tax rate for goods and services. It started on July 1st, 2017. This new system makes things easier because it charges the same tax rate each time something is made or sold. Before GST, dealing with taxes in India was quite complicated for businesses. But now, with GST, things are clearer and more straightforward. This paper talks about what GST is, how it was put into place, and what effects it has had on the Indian economy.

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 INDIAN BUSINESSES

The Goods and Services Tax (GST) regime in India, implemented in July 2017, represents a transformative overhaul of the country's indirect tax system. This research paper extensively analyzes the multifaceted impact of GST on Indian businesses across various sectors. By harmonizing numerous central and state levies into a unified tax structure, GST aims to simplify compliance, boost economic growth, and cultivate a common national market. The study delves into the intricate aspects of GST, encompassing its objectives, statutory framework, and implementation challenges. It evaluates the profound implications for diverse business entities, ranging from large corporations to micro, small, and medium enterprises (MSMEs). Key areas of focus include supply chain optimization, pricing strategies, working capital management, and transitional complexities. Furthermore, the paper scrutinizes sector-specific ramifications, shedding light on industries experiencing seismic shifts due to GST, such as manufacturing, services, e-commerce, and real estate. It also examines the role of technology in facilitating GST compliance and the digital transformation catalyzed by this tax reform. Through empirical analysis and case studies, the research paper assesses the extent to which GST has achieved its intended objectives, identifying areas of success and ongoing challenges. It provides valuable insights for policymakers, industry stakeholders, and academics, contributing to the discourse on optimizing the GST framework for enhanced economic competitiveness and ease of doing business in India. Keywords: GST, Indian Businesses, Tax Reform, Supply Chain, Compliance, Digital Transformation, Sectoral Impact, Economic Growth, Policy Implications.