Goods and Services Tax (GST) Implementation in India: A SAP–LAP–Twitter Analytic Perspective

Abstract

In a federal structure, India's determination to much-needed fiscal reforms has been widely applauded at its face value when she relinquished her previous complex and inefficient tax regime to embrace the long-awaited Goods and Services Tax (GST). It has been a significant economic move post-independence and requires validation of facts after its introduction. The present study aims to present a general macroeconomic analysis of the extent to which the adoption of GST has improved existing tax administration and resultant general economic well-being of a democratic political economy like India in light of innovation implementation theoretical perspective. Further, the study tried to determine how the stakeholders perceived such big-bang reform even after the three years of its adoption. The study attempted to assess to what extent the adoption of GST has indeed influenced the economy in general and citizens and/or consumers in particular while using a case-based qualitative inquiry. The present research applied the situation–actor–process; learning–action–performance analysis framework for the case analysis. The facts reveal that India has observed a tremendous increase in tax base vis-à-vis revenue collection. Yet, some efforts are desired to improve the low tax to GDP ratio, skewed GST payers base, negative stakeholders’ perception of GST (revealed through Twitter sentiment analysis), and the evil of tax evasion. The other merits realized by the economy are presented as benefits to the consumers, MSMEs, improved ease of doing business ranking, and foster make-in-India and AatmanirbharBharat move by the government.

Analisis Minat Pembelian Produk Preloved Sebagai Upaya Peduli Lingkungan

“…Konsumsi akan produk barang dan jasa menurut Ozturk & Ullah (2022) dapat membantu keberlangsungan perekonomian dalam suatu negara. Selain mampu memberikan keuntungan bagi penjual, meningkatkan kesempatan kerja, juga memberikan pemasukan bagi negara dalam bentuk pajak (Deshmukh et al 2022). Setelah kondisi perekonomian perlahan pulih pasca pandemi covid 19, gejolak masyarakat untuk melakukan konsumsi dikemukakan Shi et al (2022) kembali meningkat.…”

Implication of Goods and Services Tax (GST) Implementation in India on Foreign Trade

“…Two recent studies by Deshmukh, Mohan & Mohan [11] and Neog & Gaur [12] have studied the effects of GST implementation in India. Deshmukh, Mohan & Mohan [11] presented a general macroeconomic analysis of the extent to which the adoption of GST has improved existing tax administration and the resultant general economic well-being of a democratic political economy like India in light of the situation-actor-process; learning-action-performance analysis framework for the case analysis. The analysis revealed that India has observed a tremendous increase in tax base vis-à-vis revenue collection.…”

“…The level of development of the economic system depends on foreign trade [11,17]. The strategic role of foreign trade in providing sustainability to the economic system is that foreign trade is based on the realization of competitive advantages by removing the boundaries and deepening the movement of labour.…”

Impact of GST on motor and pump exports in India

“…The pre-designed and pre-tested questionnaire is used for the collection of primary data (refer to Appendix Table A1). We tested the pre-designed questionnaire on 35 exporters where we asked their opinion on drawback rates (Thowseaf & Millath, 2016;Revathi et al, 2019), long-run performance (Deshmukh, 2022), harmonization (Tiwari & Singh, 2018;Mukherjee, 2020), logistics cost (Deswal, 2019;Ojha & Vrat, 2018), IGST (Kumar, 2018), filing process, technical complications (Rao, 2019), transaction cost (Khoja & Khan, 2020), etc. In the later stage (main data collection), we added a few more variables based on the suggestions from motor and pump exporters and an extensive literature review.…”

“…This means the state and central government both will administer the GST (CBIC, 2019). The Central Goods and Service Tax (CGST) is collected by the central GoI, the State Goods and Service Tax (SGST) is collected by the state GoI and Integrated Goods and Service Tax (IGST) is collected by the central GoI (Deshmukh, 2022; Kumar, 2018). The CGST and SGST shall not be levied on goods and services exports from India because it is considered a zero-rated supply under the foreign trade policy of India (Patra, 2018).…”