GST Reform and Its Economic Impact on The ‎IndianManufacturing Sector: An Empirical ‎Cost-Benefit Assessment

  • Authors

    • Diksha Halder Research Scholar, Faculty of Management, SRM Institute of Science and Technology, Kattankulathur, Tamil Nadu-603203, India
    • Dr. K. T Vijaykarthigeyan Associate Professor, Faculty of Management, SRM Institute of Science and Technology, Kattankulathur, Tamil Nadu-603203, India https://orcid.org/0000-0001-9938-4363
    https://doi.org/10.14419/wpxb9y58

    Received date: September 23, 2025

    Accepted date: October 23, 2025

    Published date: November 3, 2025

  • Goods and Services Tax (GST); Manufacturing Industry; Cost-Benefit Analysis; Tax Reform; Economic Effect JEL Classification: C12; C23; H25 & L60‎.

  • 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.

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  • How to Cite

    Halder, D., & Vijaykarthigeyan, D. K. T. (2025). GST Reform and Its Economic Impact on The ‎IndianManufacturing Sector: An Empirical ‎Cost-Benefit Assessment. International Journal of Accounting and Economics Studies, 12(7), 43-51. https://doi.org/10.14419/wpxb9y58