Introduction Of Goods And Services Tax Research Articles

Perceptions of the textile industry stakeholders on a multi-slab goods and services tax system in India

Purpose The purpose of this paper is to present the perception of the textile industry stakeholders (manufacturers, wholesalers, retailers, consumers and tax professionals) on India’s new goods and services tax (GST) system and find whether the introduction of GST has made doing business easier or not. Design/methodology/approach The researchers used interviews and surveys to capture the perceptions of the textile industry stakeholders at Surat, a major textile hub in India. To econometrically verify the perceptions, the researchers used a logit regression model. Findings The researchers found that the provision of monthly tax filing has increased textile businesses’ dependency on tax professionals, which increased business costs. Also, the GST system has made tax compliance easier and is user-friendly. However, tax refund-related issues are a significant factor that negatively impacts the ease of doing business post-GST. Research limitations/implications The findings of the research shall be helpful for the GST Council of India and policymakers to understand the problems faced by the textile businesses and cater to their problems. Originality/value To the best of the authors’ knowledge, this study is original as none of the available studies captures the perception of all the textile industry stakeholders, namely, manufacturers, wholesalers, retailers, consumers and tax professionals, on the GST system applying econometric techniques to validate the perceptions.

Assessing Taxation Revenue and Perceptions of Tax Reforms in Post-Demonetization India

This research paper endeavors to provide a comprehensive analysis of taxation revenue in India, specifically focusing on Income Tax and Goods and Services Tax (GST), during the post-demonetization era. Additionally, it seeks to explore the perceptions of three key stakeholder groups taxpayers, tax professionals, and government officials—regarding tax reforms and their influence on tax evasion in India. The study commences by evaluating the taxation revenue of the Government of India in the aftermath of the historic 2016 demonetization move. It scrutinizes the impact of tax reforms such as the introduction of GST and changes in Income Tax regulations on revenue generation. By employing empirical data and statistical analysis, this research aims to shed light on the effectiveness of these reforms in enhancing government revenue collection, promoting fiscal transparency, and curbing tax evasion. Furthermore, this paper delves into the perceptions of taxpayers, tax professionals, and government officials concerning tax reforms and their implications for tax evasion in India. Through surveys, interviews, and qualitative analysis, it investigates the diverse viewpoints held by these stakeholders. This qualitative dimension of the study provides a nuanced understanding of how tax reforms are perceived and whether they have altered the behavior of taxpayers and the enforcement strategies of government officials.
 The outcomes of this research hold significance for both policy formulation and academic discourse. Insights derived from the analysis of taxation revenue can guide policymakers in refining tax policies, optimizing revenue collection, and fostering economic growth. Simultaneously, an exploration of perceptions surrounding tax reforms offers valuable insights into the behavioral dynamics of taxpayers, the challenges faced by tax professionals, and the strategies employed by government officials in enforcing tax regulations. this paper Demonstrate a holistic examination of taxation revenue in post-demonetization India, with a specific focus on Income Tax and GST. It also provides a unique perspective by investigating the perceptions of taxpayers, tax professionals, and government officials regarding tax reforms and their impact on tax evasion. By combining empirical data with qualitative insights, this research contributes to a more comprehensive understanding of the complex relationship between taxation revenue, tax reforms, and stakeholder perceptions in the Indian context.

Consumer Perception, Awareness, and Satisfaction about Goods and Services Tax (GST): With Reference to Kalaburagi District

Goods and Services Tax (GST) was implemented in India with the primary objective to reduce the burden on all stakeholders in the economy. Consumers are the vital stakeholders of GST as they bear the burden of taxes indirectly and contribute to government exchequer. Before introduction of GST, there were many taxes in force, which led to more complexities in taxing taxpayers, and there was a problem of cascading taxes. GST came as a hope to overcome the issues of earlier tax systems and provide many benefits to consumers. The paper examines consumers perception, level of awareness, and satisfaction about GST. To achieve the objectives of the study online survey has been undertaken by randomly sharing survey links to consumers of Kalaburagi district of Karnataka state. Non-parametric test has been used to analyze the primary data collected. The Chi-square test has been used to test consumers perception, and Mann witney U test and Kruskal-Wallis tests have been used to test the significance of two or more samples.

Impact of GST on Rural Purchasing

The Goods and Services Tax (GST) is a vast concept that simplifies the giant tax structure by supporting and enhancing the growth of a country GST is a apprehensive tax levy on manufacturing, sale and consumption of goods and services at a national level. The introduction of GST without proper preparation in the country as well as the state have made both positive and negative impacts on rural economy. Hence, an attempt has been made to analyse the impact of GST on rural households in Coimbatore district.

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.

Goods and Services Tax (GST) and its Effect on Textile Traders in Kerala: A Study of Kochi City

The introduction of GST is regarded as an important landmark in the history of tax reforms in India and it has brought so many acclaimed advantages like the removal of cascading effects of tax, reduction in transportation time and smooth flow of business activity etc. This new tax was expected to benefit states like Kerala which depends on other states for consumption activities. In the given context, this study tries to understand the effect of GST implementation on textile traders in the Kochi district of Kerala. The study found that majority of the traders were not well prepared for the transition to GST and there was an increased tax compliance after the transition to GST. There was no improvement in the business performance and there was a delay in getting the input credit tax. However, there was a fall in the prices and transport time in the post GST period.

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.

Analysing the Impact of GST on Tax Revenue in India: The Tax Buoyancy Approach

Purpose: The purpose of this paper is to analyse the impact of newly introduced Goods and Services Tax (GST) on tax revenue in India. This paper adopts the tax buoyancy approach for analysing the impact of GST on tax revenue. Design/Methodology/Approach: We conducted our study using semi logarithmic ANCOVA regression model in which we introduced Value Added Tax (VAT) and GST as dummy variables. Findings: Our study finds that after the introduction of GST India’s tax revenue has become less responsive to the changes in GDP. It indicates that post introduction of GST there is some reduction in the tax burden on the consumers and corporates which supports the government’s justification behind the introduction of GST. Practical Implications: The study is expected to help the government in deciding the future course of action towards effective policy making for revenue generation. Originality/Value: Since none of the existing studies analyses the impact of GST on tax revenue our study is unique and fulfils the gap in the existing literature.

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

Challenges and Opportunities in Implementation of GST Bill for Insurance Sector in India

The Indian economy is witnessing streamlined and focused efforts, of the kind off late for the implementation of the Goods and Service Tax (GST). With the services sector accounting for 60% of the GDP, the impact of GST on the service sector is likely to run deep. GST is undisputedly the single largest indirect tax reform since independence. It has the ability to change India's indirect taxation landscape and resulting in a positive impact on the entire economy. The present study is an attempt to understand the impact of GST on Insurance Industry along with highlighting the basic concept of GST, models of GST and its pros and cons in Indian context. The study also highlights the challenges in implementing the system. The introduction of GST will have a definitive impact on services offered by the life insurance sector. Seeking to levy GST on life insurance services would be in contrast to several countries where life insurance is a social security benefit being provided. Given the strategic importance of life insurance sector and the vast untapped market, it is believed that Government will address the concerns of the industry including ensuring merit rate of GST on insurance sector.

GST Pass-through Across Indian Sates: Evidence from Difference-in-Differences

This article analyses whether there exists any short-term inflationary pressure on Indian economy post Goods and Services Tax (GST) implementation. It was found that the introduction of GST showed no significant effect on the rate of change of consumer price index (CPI). Though, the effect of the GST implementation on consumer prices in India showed no significant change in the short term, the impact needs to monitored and observed for the long term, because the current state of economic conditions may have led to a delayed pass-through of the GST increase into consumer prices. To estimate the pass-through effect on prices due to GST implementation from 1 July 2017, various graphical and statistical methods are used to ascertain whether there has been any significant pass-through of GST on CPI– ordinary least squares (OLS) regression, and difference-in differences (DID) estimation technique has been used. The impact of post- and pre-implementation of GST has been analysed through DID by segregating the data set on the basis of treatment and control groups. The non-special category states have been taken as the treatment group and remaining special category states as control group. The results indicate that there is no significant evidence of upward bias in the CPI post GST implementation; these conventional estimates hold true for all states that were segmented based on revenue distribution and contribution to gross domestic product (GDP). JEL: D78, H20, H22

Analysis of the Impact of GST in a Strategic Way

Goods and Service Tax (GST) was a much awaited move in the domain of indirect taxes in India. With the introduction of GST the cascading effect of indirect taxes is neutralized and this causes a shift in the tax planning process of various businesses. The aim of this research is to discuss the various aspects of GST in terms of its structure. This paper studies the impact of GST to analyze which sectors would be the gainers and the losers after its implementation. Study related to the suitability of GST in the Indian context has also been carried out within this paper.

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.

GST and its implications on farm economy

Goods and services tax (GST) is a comprehensive tax levy on production, sale and consumption of goods and services at a national level. It is one of the biggest taxation reforms in the history of the country and it will integrate all the State economies and will help to boost the economic growth. Different types of indirect taxes are being paid by the industries and other sectors. With the implementation of GST all will cease to exist. The objective of the Government of India to double the farmer's income by 2022 is a major step towards farmer community. With the introduction of GST the farm economy will have mixed responses. It will affect people living in all the sections of the society. Taxation on farm economy will increase farmer's income and simultaneously it will impact the poor. The paper tries to study the concept of goods and services tax and its impact on farm economy. The study also attempts to analyze the significance and challenges in implementation of GST in Indian scenario.

Present State of Goods and Services Tax (GST) Reform in India

To remove cascading effect of taxes and provide a common nation-wide market for goods and services, India is moving towards introduction of Goods and Services Tax (GST). Under the proposed indirect tax reform both Central and State Governments will have concurrent taxation power to levy tax on supply of goods and services. It is expected that the proposed regime will improve tax collection and minimize leakage, as both Central and State Tax Administrations will monitor and assess same set of taxpayers. There are several challenges before introduction of GST and these can be classified into two broad heads - a) GST Design and Structure related, and b) GST Administration and Institutional. On design related issues, broad consensus on choice of revenue neutral rates (RNRs), harmonization of GST rate(s) across States, harmonization of list of exempted and excluded goods and services and thresholds for mandatory GST registration across States are yet to be reached. Similarly, there are several issues involved in tax administration (between Central and State Tax Administrations and also across State Tax Administrations) which are not yet solved. Taking cognizance of discussion available in the public domain this paper attempts to provide a broad contour of the proposed GST regime and highlights major challenges which require immediate attention of the Governments.

Commentary National Goods and Services Tax (GST): The Road Ahead

Goods and Services Tax (GST) is a part of the proposed tax reforms to evolve an efficient and harmonised consumption tax system in the country. GST is proposed to be a comprehensive indirect tax levy on manufacture, sale and consumption of goods as well as services at the national level. GST would give India a world class tax system and improve tax collections. It would end the long standing distortions of differential treatment of manufacturing and service sector. The introduction of GST will lead to the abolition of various central and state indirect taxes and eliminate the cascading effects of multiple layers of taxation. It is claimed that GST will facilitate seamless credit across the entire supply chain and across all states under a common tax base. The changeover to GST will be a game-changing tax reform measure which will significantly contribute to the buoyancy of tax revenues, acceleration of growth, and generation of many positive externalities. Once the integrated GST across the country is introduced, it will simplify tax administration and eliminate cascading of taxes. It will lead to reduction in the distortions in the structure of production, consumption and exports and further to a more efficient allocation of resources. The demand for manufactured goods can be expected to grow significantly. This paper explains the modalities of the proposed GST.

Elements of Compliance Costs: Lesson from Malaysian Companies towards Goods and Services Tax (GST)

Various parties including academics, professionals and the society (the potential GST payers) are arguing about the introduction of GST in Malaysia. Goods and Services Tax (GST) or Value Added Tax (VAT) is a consumption tax imposed on the sale of goods and services. The Malaysian government introduce this potential tax mechanism, in order to increase the existing tax bracket and replacing the long-implemented service and sales taxes. With the introduction of GST, the Malaysian government felt it would provide them with the prospect to reduce the rates of individual and corporate income tax. However, do all companies particularly small and medium enterprises (Companies) ready to adopt the systems efficiently? If they could adopt the system, how much their compliance costs involved such as developing new software, human resource training and accounting systems? The objective of this paper is to obtain companies’ compliance costs and its elements and to provide suggestions to the tax authority what are the essential of companies to minimize their compliance costs. The data was collected through questionnaire from various enterprises throughout Malaysia. This paper is expected to suggest a proposal to the relevant authorities on the impacts on those companies. The government should also provide some special tax incentives to compensate the initial compliance cost incurred by small enterprises in particular so that they are not burdened by the newly implemented GST.

The Impact of Goods and Services Tax on the Pattern of Canadian Consumer Spending and Saving

This paper examines the effects of the Canadian Goods and Services Tax (GST) on the pattern of Canadian consumption and savings over a period of time. To test the change since the introduction of GST, we apply a version of the almost ideal demand system (AIDS) which allows individual demands to be conditional on shift parameters. The empirical results suggest important changes in the relationships since the introduction of GST in Canada. The appearance of GST in 1991 has significantly increased the share of savings and services, while the share of commodity goods has decreased.