GST Reform and Its Economic Impact on The IndianManufacturing Sector: An Empirical Cost-Benefit Assessment
Year: 2025
Type: article
Abstract: This study evaluates the influence of the Goods and Services Tax (GST) on the manufacturing sector in India through a detailed cost-benefit analysis using secondary data. GST, introduced as a major indirect tax reform, aimed to unify the complex tax structure and boost economic efficiency. Quantitative techniques, such as Analysis of Variance (ANOVA) and regression analysis, are used in the research to analyze how GST implementation has affected manufacturing performance metrics like production expenditure, profitability, and growth in output. Secondary data gathered from industry publications, government documents, and accounting statements of the chosen manufacturing companies over the pre- and post-GST eras are analyzed. The ANOVA test will identify significant differences in cost and benefit factors prior to and after GST implementation, while regression analysis uncovers the correspondence between GST implementation and manufacturing sector performance. The findings reveal that GST has contributed to a decrease in cascading taxes, enhanced input cost efficiency, and profitability, though the impact differs among subsectors. The research helps understand the contribution of GST in defining the manufacturing sector, offering insight for policymakers and industry players seeking to maximize tax reforms and ensure sustainable industrial growth.
DOI: 10.14419/wpxb9y58
Authors: Diksha Halder, Dr. K. T Vijaykarthigeyan
Institution: SRM Institute of Science and Technology
Topic: Economic and Fiscal Studies
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W4415864911
FWCI:
Cites:
Cited by:
Related to: