GST In India Research Articles

Investigating the compliance behavior of GST taxpayers: An extension to theory of planned behavior

The government around the globe are striving to improve their public finance to meet their public expenditures and for sustainable development of their economies. However, the capability of the governments to generate adequate revenue is limited and refrained by numerous factors. The non‐compliance behavior of GST taxpayers is one of the major factors attributed to this phenomenon. Therefore, this paper endeavors to frame and validate a comprehensive instrumental scale with the application of the extended Theory of Planned Behavior (TPB) for analyzing the determinants of compliance behavior of GST taxpayers in India. The current study has adopted the quantitative design through exploratory and confirmatory studies by incorporating qualitative semi‐structured interviews with 100 GST consultants to validate the instrumental scale. The study has collected a random sample of 339 GST taxpayers using snowball random sampling. Meanwhile, the study has employed the Exploratory Factor Analysis (EFA) and Confirmatory Factor Analysis (CFA) for analyzing the collected data. The result affirms six major factors in determining the compliance behavior of GST taxpayers explaining 65.166% of the total variance. The findings have instituted perceived complexity, trust and moral obligation in addition to three major constructs of TPB theory namely attitude behavior, subjective norms and perceived behavioral control of the GST taxpayers. The results explicate that the compliance behavior of GST taxpayers is a dynamic and multifaceted phenomenon and it is critical for GST authorities to comprehend the compliance behavior of GST taxpayers. The result explicates that there is a need to simplify and rationalize the GST system in India to increase voluntary compliance of taxpayers. The results also endorse for building trust between GST taxpayers, GST authorities and the state. This study may act as a baseline for formulating policies and strategies on GST in India. There is hardly any national and international study that has applied the extended theory of planned behavior for studying the antecedents of compliance behavior of GST taxpayers.

OPPORTUNITIES AND CHALLENGES FOR MICRO, SMALL & MEDIUM ENTERPRISES (MSMES) IN INDIA: A DETAILED STUDY

Purpose: The purpose of the study is to review the existing opportunities and challenges of MSMEs in India mainly after implementation of GST. MSMEs make up more than 90% of all enterprises in most economies, are the main drivers of job growth, and contribute significantly to both industrial output and exports. MSMEs are essential to the broader industrial growth in India as well. When compared to the industrial sector as a whole, the MSME sector has had more expansion in recent years. Since then, 50% of MSMEs in India are owned by poor communities, it is possible to assess the significance of the MSME sector. MSMEs have contributed praiseworthy role in the conversion of the economy of India is rural economy to an industrialised one. The second largest employer in India is the MSME sector, right behind the agricultural sector. They are extensively spread out around the nation and generate a wide variety of goods and services to satisfy the demands of local, national, and multinational supply chain as well as local and worldwide marketplaces. To grow this industry and increase its competitiveness, the government has offered a number of plans and initiatives. Nevertheless, this industry has been contributing a large portion in India's economy but there are numerous obstacles that make the running of this sector incredibly challenging. The current study makes an effort to pinpoint key opportunities and restrictions for MSMEs in India. Design/Methodology/Approach: The study mainly includes the review of secondary data collected from various authors, journals, magazines, government’s websites and other various unpublished sources.Findings: The study makes an effort to draw attention to the different government initiatives created to support the MSME sector in India. The study showed that while the government is making every effort to support MSMEs through a variety of measures, there are still many restrictions and challenges that this industry must overcome.Future Scope of Research: As we all know, the Indian economy is still in its early stages, and the implementation of GST in India is only five years old. Therefore, there are many sectors and areas in the Indian economy that are not fully developed, and the development of these sectors in the near future will create more opportunities and challenges for MSMEs.

Is Indian automobile sector performance get affected post implementation of GST in India?

Is Indian automobile sector performance get affected post implementation of GST in India?

A Study on Goods and Services Exempted from GST in India

ABSTRACT In this study the introduction and history regarding GST is provided in detailed manner and literature review is briefed and the exemptions are listed, they are goods and services and then the challenges and criticism is provided and then the conclusion is given. This study tries to provide a primary information about the exemptions which are in place and also what are will be the challenges occur in deciding the goods which needs to be exempted.

Is Provision of Medical Instrument for Use Without Any Consideration a Supply Under GST?

With the advent of GST in India, supply became the taxable event and this made the place of supply and time of supply particularly, and the act of supply in general significant. The GST laws mandate registration under section 22 of the Central Goods and Services Tax Act, 2017 (hereinafter referred as the CGST act, 2017) for all business. Almost every realm of service is now covered under the scope of supply under section 7 of the CGST Act, 2017 and free supplies are also clearly covered within the scope of the said section. Few Pharmaceutical companies are engaged in importing and distributing medical equipment and providing healthcare solutions in India and beyond. These Companies place certain medical equipment at unrelated hospitals, labs etc., on a free-of-cost basis in exchange of a minimum purchase obligation arising out of an agreement between its clients. In a sequence of rulings from the AAR to the Kerala High Court and back to the AAR, questions regarding a unique case of free supply of Taxable Pharmaceutical Instruments based on a periodic supply contract was presented before the Authority. The discussed rulings answered what is Periodic Supply Contracts, Composite Supply, Naturally Bundled Supply and Indivisible Supply and raised various new questions and avenues for discussion. And, this article, in particular, attempts to analyse the nature of such purchase agreements and the possibility of availing Input Tax Credit on the medical instruments.

India’s GST Paradigm and the Trajectory of Fiscal Federalism: An Analysis with Special Reference to Kerala

Since the design and implementation of GST is often perceived as a difficult task, especially in developing countries with federal constitutional structures, the introduction of GST in India in 2017 has been considered a great achievement. Against this background, this article explored the characteristics of India’s GST paradigm from a fiscal federal perspective, its implementation and the tax performance of States under GST. The Indianized GST paradigm, built on the edifice of GST Council and three key pillars of revenue neutrality, tax sharing between the Centre and the States and the provision for GST compensation, has been designed towards fostering cooperative federalism. Our analysis revealed that the revenue neutrality has not been ensured and there were also issues with tax sharing and GST compensation. Both the edifice and the pillars of GST, therefore, were fraught with fault lines in both the design and implementation. Tax effort of the States did not increase indicating that GST has not been helpful in improving the revenue position of the States. Although India’s GST paradigm was destined to foster cooperative federalism the outcomes appear to lead us towards coercive federalism. JEL Codes: H71, H73, H77

Quarterly return monthly payment (QRMP) scheme under goods and service tax: Analysis and discussion

GST was implemented by Government of India as one indirect tax for whole nation as single tax on the supply of goods and services and was considered as biggest indirect tax reform of Independent India. The main purpose of implementation of GST in India was to replace multiple taxes with uniform tax on supplies and to remove the cascading effect. In order to remove the loopholes and to make the system more efficient and user friendly, the Government of India is continuously hustling to improve Goods and Service Tax Network (GSTN) and updates are being made to the system, provisions and various returns on the portal accordingly from time to time. This new scheme named Quarterly Return Monthly Payment (QRMP) is also the part of said exercise of simplification of process by GOI, introduced w.e.f. 1st January, 2021, in order to lessen the tax compliance burden and to ease the process of filing returns to MSME taxpayers under GST. QRMP Scheme can be availed by eligible registered persons to file their GSTR-1 and GSTR-3B quarterly and pay taxes on monthly basis.

Goods and Services Tax in India and Other Countries: A Comparative Study

Taxation is the major source of development of any economy. France was the first country who implemented GST with four tax rate slabs in 1954 in the world. At present, there are 160 countries in the world that have implemented GST/VAT. GST is a single unique tax structure which reduces the cascading effect. As per the World Bank Report, India’s GST top slab of 28% is the second highest of the 115 countries. In India Goods and Services Tax was implemented on 1st July, 2017. GST model of India is based on a dual structure like Canada and Brazil. This study highlights the system of GST, threshold limit, and GST rates around the world. This paper compares the structure of GST in India to some other countries of the world. This study is based on the secondary data taken from various sources such as Government websites, articles, research papers, etc.

Study on implementation and impact of GST in India

Study on implementation and impact of GST in India

Optimal Taxation in a Federation and GST in India

Optimal tax models, starting from Ramsey (1927), are often studied using a single government. However, there are several countries which are federations and in that multiple levels of government have fiscal authority, which masks the heterogeneity across states. In this paper we study a federation with two states and a federal government. We first find that the optimal tax design indicates tax smoothing across the states and consumption smoothing across states and time. Moreover, optimal consumption is found to be independent of the tax rates. We also find that all governments cannot have zero borrowing simultaneously. Then we characterize two equilibria, one where both federal and state governments impose taxes and two, where only the federal government imposes tax. We find that in the first equilibrium, states potentially impose different tax rates, but consumption across states are the same. In an equilibrium with a single federal tax, consumption is smooth across time, but may not be equal across states. However, aggregate consumption in the economy is greater in the second equilibrium. India has adopted a nationwide GST system, moving away from multiple taxation. So, we then calibrate the model to Indian data and find the revenue neutral tax rates. We find that the highest revenue neutral tax rate is 20.1% and the median rate is 11.4%. Using the calibrated indirect tax rates in a regression analysis, we find that tax rates at the state level is negatively related to the growth rate of the state. So, after the implementation of GST in India, some states may see a higher level of consumption tax rate in the state and hence, a fall in growth rate.

An Overview of GST in India

Taxation is very important for national economic development. Economic development depends on the purchasing power of the nation. Tax policy makes an important contribution to the economy, both in terms of efficiency and equity. The GST is one of the indirect taxes that was introduced in India on 1 July 2017 and is applicable throughout India and replaces various cascading taxes imposed by central and provincial governments. In India dual systems from GST are proposed, including CGST and SGST. In the GST all indirect taxes are placed under a single regime. Under GST, goods and services are taxed at 0%, 5%, 12%, 18% and 28%. It combines various other taxes, such as local and local taxes, entertainment taxes, consumption taxes, surcharges, octroi and others. The final consumer receives only the GST paid by the last dealer in the supply chain and receives the compensatory benefits in the previous step. The GST was originally proposed to replace a number of indirect taxes with uniform taxes, and is expected to drastically change the country's $ 2 trillion economy. GST falls under the jurisdiction of the GST Council and GST is chaired by the Indian Minister of Finance and is supported by the Goods and Services Network (GSTN), a fully integrated tax platform covering all aspects of GST. The portal is used by the government to keep track of all financial transactions and offers taxpayers everything from registration to filing tax returns and keeping track of all tax data.GST becomes the largest reform in Indian tax since 1947.

The Impact of Implementation of GST on Indirect Tax Revenue Across the States

GST in India was implemented from 1st July 2017. It is considered to be major tax reform in India’s Indirect tax structure. GST is a destination based consumption tax that is levied on every value addition. The greatest advantage of implementing GST, it facilitates free movement of goods or services across state frontiers making whole of India as one unified market. There were several reasons which delayed the implementation of GST in India. One of the main reasons was loss of revenue to the states after GST Implementation because many state taxes were subsumed in GST. Although, Centre has introduced Compensation cess for the states to cover the loss of revenue and on the recommendation of 14th Finance commission, 42% of CGST collection will be distributed to state government. The purpose of this paper is to find out the indirect tax collections of states in pre & post GST era. The states indirect tax revenue is collected from the official website of the government. (https://www.gst.gov.in/). The study is descriptive in nature and the analysis of data is done by using the Test of Equality (Paired T test) and ANOVA. Since none of the existing studies have shown such an impact assessment, our study is unique and attempts to fill the gap. Our results have shown that states collections of tax have increased after imposition of GST and there is even more variability in tax collections among states.

Impact of goods and service tax on Indian economy

GST otherwise called the Goods and Services Tax is characterized as the mammoth indirect tax structure which is intended to help and improve the financial as well as the economic development of a nation. In excess of more than 150 nations have implemented GST up until this point. Nonetheless, the possibility of GST in India was mooted by Vajpayee Government in the year 2000 and the sacred change for the same was passed by the Lok Sabha on 6th May 2015. On bringing GST into action, there was an amalgamation of Central and State taxes into a singular obligation portion. It also enhanced the circumstance of India in both, nearby and worldwide market. This concept is not new as it was prevalent before GST came in the indirect taxes. It is just that the scope has widened. Earlier, it was not possible for a tax payer to claim Input Tax Credit for Central Sales Tax, Entry Tax, Luxury and other taxes. Moreover, the manufacturers and the service providers could not claim the Central Excise Duty. The Goods and Service Tax is a multi-tier tax where ultimate burden of tax falls on the consumer consuming the good or service. It is called as Value Added Tax as at every stage, with every addition of value, tax is being paid. Under this scheme, an individual who was liable to pay tax on his or her output- whether for provision of service or for sale of goods.

Public policy of GST in India: A study on pharmaceutical sector with special reference to Healthcare

India's greatest duty move is now a reality. 1999 was the year when GST was thought of. The amending bill for the full-powered launch of GST was approved by the Rajya Sabha on 8 August 2016, and it was enacted in late August. It is essential to comprehend that GST isn't a duty concession scheme where every good and service has become way cheaper just because the administration has decreased the duty rates. The single Revenue Neutral Rate (RNR) was a difficult system to manage, and thus the Indian govt. I wanted to fix it. Nonetheless, because of practical reasons, "four GST slabs have been set at 5%, 12%, 18%, and 28%. Precious metals have a special rate. The rate of 18% would anyway be relevant for most goods. GST was enacted on 1 July 2017."

A Comparative Study on Taxation System in India and Singapore with Special Reference to GST

This exploration paper centers around GST in Singapore and India, our endeavour is to recognize the likenesses and contrasts in the Inception, Implementation and execution of GST, a framework to supplant the recent frameworks of circuitous taxation which made a few issues shoppers and organizations. We have found through our investigation that India and Singapore have 2 unique expectations behind the taxation. Singapore has a longstanding record of low rates of GST while India has 4 slabs for use of rates to costs. We have thought about things from 5 ventures and reached inferences dependent on the distinctions. Singapore pursues a comparative framework for burden and accumulation of roundabout tax called Goods and Services tax. GST in Singapore was anyway presented very nearly 2 decades sooner on 1 April 1994. The main notion of the paper is to study the basic concept of GST in India and also to analyse the existing legal framework on GST in India as well as Singapore and also to analyse the various legal issues regarding GST.

Impact of GST on Industry with Special Reference to the Real Estate Sector

The introduction of GST in India has ensured uniform exemption list, uniform rates and uniform collection procedures throughout the country. For the industry, this implies a shift from a complex system of multiple tax rates and collection procedures to a new system that is technology-based, transparent and free from distortions. This paper outlines the benefit of GST for the industrial sector with special emphasis on the real estate sector. Real estate is an important sector of the Indian economy in terms of contribution to GDP and employment. With various concessions announced by the GST Council from time to time for the real estate sector, the sector is bound to get a boost. At the same time, the government will also ensure proper monitoring of one of the most unregulated sectors in India, by ensuring that the rate cut benefits are passed on to the neo and middle-class home buyers.

The 'One-Ness' of One Nation, One Tax: Travails of Legislating GST in India

A decade long passage of the GST Bill in India was an exercise in testing the strength of the Indian federation. It was seen to be a touchstone of cooperative fiscal federalism. The GST was propounded as a “One Market, One Nation, One Tax” reform. In a centralized federation like India, how was this process negotiated? What were some of the issues that proved to be most contentious in arriving at a consensus, not only among the disparate states of the Union of India, but also between the Centre and States? In this paper, we analyze this much-touted GST tax reform in India using a top-down lens that investigates the process of legislating the GST in a federation. Our endeavor is to understand the accommodations and the trade-offs that were made to strike a balance in making this tax reform a truly one nation, one tax reform. All decisions pertaining to the legislation of the GST are taken by the GST council that comprises representatives from both the center and the state. Till February 2019, around 33 GST Council meetings were held, touching on several pertinent issues. All decisions have been brought in through consensus, and the provision of voting has not been used. GST was propounded as a revenue-neutral, price-neutral and efficient tax reform. Yet, a massive tax reform of such type would have gainers and losers. Based on the analysis of the GST council minutes, we have delineated the following topics that resulted in a lot of heated debate in the council meetings: Compensation to the states in lieu of loss of revenue Composition Levy Scheme Cross Empowerment GST and the Real Estate sector It should not come as a surprise, that in the short span of the implementation of the GST Act in the country, these very issues continue to plague its implementation. We also postulate some policy changes that would be required to deal with these roadblocks.

GST in India : Performance of Companies After One - Year of Roll Out

GST in India : Performance of Companies After One - Year of Roll Out

The Recital Relationship between Share Prices of Indian Industries during the GST Implementation

In India, earlier we pay various taxes i.e. Direct and Indirect taxes, which are felt as burden on people and due to these taxes, the corruption is increasing. To avoid this issue Indian Government is decided to have the changes in the Tax payment. So the decision what they have took is to have the unique tax percentage across the country.Before the GST introduced, there are different types of taxes has to be paid by the public as well as the people who do the business. GST is successfully implemented in various countries. GST tax will combine all the direct and indirect taxes paid by the individuals. This tax will help to increase the Gross Domestic Product GDP of the country. It is proven in the countries which are adopted the GST method in the Tax. And also the pain of paying multiple taxes for product or services will get reduce. This tax is the comprehensive tax of central and state government. This paper analyse the what kind of changes happened in the share market after the introduction of GST in India. It provide the variation of share price before and after the GST.

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