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Stream/Area:
-
Subject:
-
Paper ID:
10.55041/IJSREM.GSTCOS101
Volume:
10 |
7 |
Jul 2026
Pages:
1-8
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.
Associate Professor, Department of MBA,
CMRTC, Hyderabad
The implementation of the Goods and Services Tax (GST) in India on 1 July 2017 brought significant structural and technological changes in the country’s business environment. GST introduced a unified indirect tax system supported by digital compliance mechanisms such as online return filing, e-way bills, automated tax reconciliation, and Input Tax Credit (ITC) matching systems. These reforms substantially influenced the operational efficiency of firms across manufacturing, trading, logistics, and service sectors. The present study examines the impact of GST on operational efficiency of firms in India by focusing on major operational variables including reconciliation time, logistics turnaround time, compliance cost trends, and ITC utilization efficiency. Reconciliation time refers to the duration required for matching invoices and tax records; logistics turnaround time indicates the speed of transportation and movement of goods; compliance cost trends represent the expenses incurred for tax compliance and digital systems; and ITC utilization efficiency measures the effectiveness of claiming input tax credits against tax liabilities. The study is descriptive and analytical in nature and is based on secondary data collected from government reports, GSTN publications, Ministry of Finance statistics, and authentic research studies. The study finds that GST significantly improved digital compliance, reduced operational delays, accelerated logistics movement, enhanced transparency, and improved tax credit utilization among firms. The findings further indicate that GST-driven digital systems contributed toward modernization and operational coordination in Indian businesses. The study concludes that GST has emerged as an important catalyst for improving operational efficiency and promoting digital business transformation in India.
KEYWORDS
The study confirms that GST has significantly improved the operational efficiency of firms in India. The consistent decline in reconciliation time from 28 days to 6 days shows faster and more accurate digital invoice matching through GSTN systems. Similarly, the rise in e-way bill generation reflects improved logistics efficiency and smoother interstate movement of goods due to reduced physical checkpoints and better tracking systems. Compliance cost trends indicate a clear reduction in administrative burden due to automation and digital filing systems, while ITC utilization improved from 54% to 91%, showing better financial efficiency and liquidity management among firms. The increase in ERP integration also highlights strong digital adoption and transformation in business operations. Overall, GST has enhanced operational efficiency through digitalization, automation, and improved compliance systems, leading to more efficient and transparent business processes in India.
· Central Board of Indirect Taxes and Customs (CBIC). (2023). Annual report 2022–23: Indirect tax administration and GST performance. Government of India. https://www.cbic.gov.in/resources//htdocs-cbec/annual-reports/annual-report-2022-23.pdf · Chandak, A. (2019). Introduction of e-way bill: The Indian logistics sector and supply chain industries gearing up for huge challenges. SSRN Electronic Journal. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3417555 · Dandona, I. (2023). E-way bill mechanism in India. https://kuey.net/index.php/kuey/article/view/10080 · Dasaklis, T. K., Casino, F., & Patsakis, C. (2020). A traceability and auditing framework for logistics systems. arXiv. https://arxiv.org/abs/2005.11556 · Goods and Services Tax Network (GSTN). (2024). GST annual report 2023–24: Digital compliance and return filing statistics. https://www.gstn.org.in/annual-report-2023-24 · GST Council. (2024). GST Council reports and policy documents on indirect tax reforms and ITC framework. https://gstcouncil.gov.in/gst-council-meetings · Gunaratne, H., & Pappel, I. (2020). Enhancement of e-invoicing systems by increasing efficiency of workflows via disruptive technologies. arXiv. https://arxiv.org/abs/2010.07636 · Huang, L. (2024). Evolving e-commerce logistics planning: Integrating embedded technology and ant colony algorithm for enhanced efficiency. arXiv. https://arxiv.org/abs/2402.15965 · Kaliselvi, K., Thangamayan, S., & Lavaraju, B. (2024). An analysis of e-way bill and evaluating its effectiveness in curbing black market operations. Library Progress International, 44(3). https://bpasjournals.com/library-science/index.php/journal/article/view/1974
Publication Date
7/5/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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The authors declare no conflict of interest related to this research work.
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