Impact of GST Rate Cutdown on Corporate Strategy of Industrial Units in MIDC Amravati, Maharashtra
Prof. Shreeram D. Balekar¹
¹Assistant Professor, Sushila Suryawanshi Management Institute of Technology Advancement, Amravati, Maharashtra, India
Email: balekar.shreeram@gmail.com
Corresponding Author: Prof. Shreeram D. Balekar (balekar.shreeram@gmail.com)
Abstract
The Goods and Services Tax (GST) is one of the most significant indirect tax reforms introduced in India, aimed at simplifying the tax structure and improving economic efficiency. In recent years, the government has undertaken GST rate cutdowns to reduce the tax burden on industries and stimulate growth. This study examines the impact of GST rate cutdown on the corporate strategies of industrial units operating in MIDC Amravati. The research adopts a descriptive and analytical design and is empirical in nature. Primary data was collected from 50 officers of different industrial units using a structured questionnaire, supported by secondary data from journals, government reports, and industry publications. The study analyzes the influence of GST rate cutdown on key strategic dimensions such as cost of operations, pricing strategy, cost leadership, competitive position, profitability, cash flow, strategic decision-making, and long-term sustainability. The findings reveal that GST rate cutdown has significantly reduced operational costs, influenced pricing and cost leadership strategies, improved competitiveness, enhanced profitability and cash flow, and played an important role in strategic planning and growth decisions. The study concludes that GST rate cutdown functions as a critical external strategic determinant that shapes corporate strategy and supports sustainable industrial development. The paper offers policy-level and managerial suggestions to enhance the strategic benefits of GST reforms.
Keywords: GST Rate Cutdown, Corporate Strategy, Cost Leadership, Pricing Strategy, MIDC Amravati, Industrial Units
