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Stream/Area:
-
Subject:
-
Paper ID:
10.55041/IJSREM.GSTCOS085
Volume:
10 |
7 |
Jul 2026
Pages:
1-9
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
MBA Student,
CMR Institute of Technology, Hyderabad
Assistant Professor
CMR Institute of Technology, Hyderabad
The Goods and Services Tax (GST) is one of the most significant indirect tax reforms introduced in India with the objective of creating a unified national market, improving tax compliance, and enhancing economic efficiency. The proposed GST 2.0 framework aims to further simplify the tax structure, rationalize tax rates, strengthen digital compliance mechanisms, and promote ease of doing business. This study examines the conceptual framework and structural features of GST 2.0 and analyzes its fiscal implications on the Indian economy. The research investigates the macroeconomic impact of GST 2.0 on Indian equity markets with particular focus on the Fast-Moving Consumer Goods (FMCG) sector, which is highly sensitive to changes in taxation, consumer demand, and distribution efficiency. The study evaluates the post-implementation financial performance of ITC Limited by analyzing key profitability indicators and stock market behavior using Kolmogorov-Smirnov normality tests, Shapiro-Wilk tests, trend analysis, and ratio analysis. By examining stock price movements, market volatility, and investor perception, the research assesses whether equity markets efficiently incorporate GST-related information. Findings provide valuable insights into the effectiveness of GST 2.0 reforms, their influence on corporate performance, and their role in shaping investor confidence and stock market outcomes.
KEYWORDS
The study concludes that GST 2.0 has had a mixed but largely positive impact on the FMCG sector and on the financial performance of ITC Limited. Normality tests (Kolmogorov-Smirnov and Shapiro-Wilk) applied to 62-day pre-GST and 63-day post-GST Nifty FMCG datasets confirmed that both distributions are non-normal, with the Shapiro-Wilk test rejecting the null hypothesis (H₀) in both cases (p = 0.015 and p = 0.042 respectively). This confirms that GST 2.0 reforms have a statistically significant impact on FMCG market prices. At the firm level, ITC Limited demonstrated strong improvement in profitability from Q2 to Q3 FY 2025–26, with net profit growing by 9.40%, EBITDA margins improving by 1.12 percentage points, and return ratios (ROA and ROE) rising, indicating effective adaptation to GST 2.0 reforms. While the broader stock market experienced transitional volatility, it demonstrated a strong recovery phase peaking at 11.16% growth before stabilizing. Overall, GST 2.0 has contributed to structural improvements in the Indian economy — enhanced tax transparency, streamlined supply chains, and strengthened corporate efficiency — although its full benefits are realized gradually. This study emphasizes the need for stable fiscal policies, better market awareness, and continued empirical research using non-parametric statistical methods to fully understand the long-term economic impact of such far-reaching tax reforms.
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Publication Date
7/4/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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Conflict of Interest
The authors declare no conflict of interest related to this research work.
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