Loading article...
Loading article...
Stream/Area:
-
Subject:
-
Paper ID:
10.55041/IJSREM.GSTCOS115
Volume:
10 |
7 |
Jul 2026
Pages:
1-12
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.
Asst. professor, Department of MBA.,
Annamacharya Institute of Technology and Sciences , Kadapa
Implemented on 1 July 2017, the GST has been one of the most radical reforms in the history of Indian indirect taxes. Though there are plenty of assessments of GST at the national level, the empirical evidence at the sectoral level is rather limited. This is especially so for the younger states of India. The paper studies how above three economically strategic sectors retail trade, construction and supply chain operations are experiencing GST in the neighbouring states of Telangana and Andhra Pradesh. Utilizing a mixed method research design, data collected from a survey conducted on 426 respondents across the two states, and secondary data through GST Network, on-site data collection from the Central Board of Indirect Taxes and Customs (CBEC) and Commercial Tax Departments (CTD) of Telangana and Andhra Pradesh states. The Quantitative findings are based on descriptive statistics, one-way ANOVA, chi-square tests of independence, and multiple regression analysis. The qualitative findings are based on 24 semi-structured interviews with sector managers and tax practitioners. The results show that the construction sector has the maximum compliance burden and working capital pressure owing to the inverted duty structure on steel and cement inputs. According to a report from the retail trade, a moderate benefit from the input tax credit set-off was felt. However, there is a persistency in the friction regarding the generation of e-way bills, especially for the intra-state movement of goods. Transporters in the supply chain are claiming that transit times after GST have been reduced, but they are apprehensive of the cascading compensation cess effect. Besides, they are also worried about the frequent notifications on rate rationalisation. The differences among the three sectors regarding perceived compliance cost, and among the two states regarding ease of availing input tax credit, are statistically significant at 0.01 level. The paper ends with sectoral policy suggestions and strategic implications for senior management in these sectors. The findings will be of interest to policymakers considering the next phase of GST improvements, and to executives re-evaluating tax strategy in post-reform India.
KEYWORDS
This study set out to evaluate the sector-specific experiences of GST in three strategically important sectors across the two neighbouring states of Telangana and Andhra Pradesh. The findings, derived from primary survey data supplemented by secondary administrative statistics and qualitative interviews, support the broad conclusion that GST has produced uneven, sectorally differentiated, and state-contingent outcomes. While the headline narrative of GST as a successful tax modernisation initiative is broadly accurate, the granular picture reveals significant distributional consequences that warrant managerial and policy attention.
American Psychological Association. (2020). Publication manual of the American Psychological Association (7th ed.). APA. Banerjee, S., Mehta, K., & Iyer, V. (2022). Logistics corridor efficiency in southern India after GST: A corridor-level analysis. Indian Journal of Transport Economics, 47(2), 112–135. Bird, R. M., & Gendron, P.-P. (2007). The VAT in developing and transitional countries. Cambridge University Press. Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative Research in Psychology, 3(2), 77–101. Central Board of Indirect Taxes and Customs. (2024). Annual report 2023–24. Ministry of Finance, Government of India. Confederation of Indian Industry. (2021). GST five years on: Sectoral impact assessment. CII Publishing. Creswell, J. W., & Plano Clark, V. L. (2018). Designing and conducting mixed methods research (3rd ed.). SAGE Publications. Federation of Telangana and Andhra Pradesh Chambers of Commerce and Industry. (2022). GST impact on MSMEs in the twin Telugu states. FTAPCCI Research Bulletin, 14(3), 5–28. Government of Andhra Pradesh. (2023). Socio-economic survey 2022–23: Andhra Pradesh. Planning Department. Government of India. (2017). The Central Goods and Services Tax Act, 2017. Ministry of Law and Justice. Government of India. (2022). Review of the GST regime: Five-year assessment report. Ministry of Finance. Government of Telangana. (2023). Telangana state economic survey 2022–23. Planning Department. GST Network. (2024). GSTN statistical handbook: Registrant and return-filing trends (2017–2024). GSTN. Kumar, R., & Reddy, P. (2019). GST and the construction sector: An analysis of input tax credit and working capital. Journal of Indian Taxation, 6(1), 45–68.
Publication Date
7/4/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
Documents
Article Views
1
Total views since publication
PDF Downloads
2
Total downloads since publication
Geographic Reach
5
Digital Preservation: This article is permanently archived on Zenodo and complies with all data preservation standards across major indexing platforms.
Plagiarism Screening
This manuscript has been checked for plagiarism using TurnitinPlagiarismChecker software.
Conflict of Interest
The authors declare no conflict of interest related to this research work.
Funding Information
No funding information available for this research.
Related research in the same subject area
Loading similar articles...