GST Implementation and its Effect on Retailer Profitability in Uttar Pradesh
DOI:
https://doi.org/10.48047/3rhf5505Abstract
This research investigates the effects of Indian Goods and Services Tax (GST) on the profitability of retail firms in Uttar Pradesh. The researchers analyzed survey data from 300 retailers in urban and semi-urban areas combined with 30 in-depth interviews, using a mixed-methods design. Results show that, although the GST simplified tax compliance, by subsuming several state and central taxes into a single tax, it has increased the operational costs and narrowed profit margins, more so for small retailers having limited resources. Results of the quantitative research are that net profit margins are substantially decreased, compliance costs are grown and timely input VAT obtained difficultly. Quantitative perspectives reveal obstacles around technology adoption, the multi-tax slab driven pricing, and the delay in the refund of tax, hampering cash flows. The study highlights the asymmetrical burden on small retailers relative to larger peers and suggests policy responses to simplify processes, nurture digital readiness, private target training. The paper ends with specific suggestions for action that will enable retailers to assist them to successfully operate in the GST economy and remain profitable. refunds are
Keywords
GST, Retailers, Profitability, Uttar Pradesh, Tax Reform, Small Business Impact
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