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CHAPTER 2

REVIEW OF LITERATURE

2.1 INTRODUCTION

“A literature review can be defined as the selection of available documents

(both published and unpublished on the topic, which contain information, ideas, data
and evidence written from a particular standpoint to fulfil certain aims or express
certain views on the nature of the topic and how it is to be investigated, and the
effective evaluation of these documents in relation to the research being proposed‖.

2.2 PURPOSE OF LITERATURE REVIEW

Literature Review serves the following purposes

 To understand the background of the research study.

 To identify concepts relating to it and causal relationships.

 To identify appropriate methodology.

 To identify relevant sources of data.

 To understand reporting format and procedures.

2.3 GST AND INTERNATIONAL COMPARISON

Akhil & Thattil (2018)[12] compared the Indian GST model with that of GST
implemented in other countries. Through a comprehensive analysis of secondary
sources and thorough comparative analysis, they concluded that it benefits the economy
in the long run. Economic stakeholders need to wait for some time to witness the real
benefits.
 56

Benge (1998)[13] studied the effects of GST in Australia. The researcher

concluded existing tax system would increase the current bias by making production
decisions inefficient. He further added that these taxes would make Australia
handicapped in the international marketplace and strongly recommended its
introduction to overcome the tax inefficiencies in Australia.

Dickson & White (2012)[14] studied the implications of the GST model adopted
in New Zealand and compared the GST model in New Zealand and the VAT model
adopted in the United Kingdom. They recommended that the UK VAT model be
replaced by a single tax rate of 15% by taking the New Zealand experiences of their
GST model. They further suggested the government should convince the public to get
their support for a single-rate tax system in the UK.

Liu & Huang (2010)[15] studied the relationship between GST and mortgage
cost in Australian building societies. They made a comparative analysis of mortgage
yield spreads in the pre- and post-GST periods and found that its introduction has
pushed lenders to pass their billion dollars GST cost to borrowers and this has increased
mortgage cost, thereby reduced affordability and suggested for reconsideration of input
tax credit available for lenders.

Mintz et al.,(1994)[16] analysed the various alternatives for GST to be

implemented in the Canadian economy. According to their study, GST has problems
like lack of fairness in taxation, tax evasion at the final point of sale, increased tax
competition and reduced incentives for cross-border shopping, and complicated and
lacks harmonisation. According to them, these problems pose a significant threat to the
Canadian economy and therefore suggest business transfer tax, single retail tax,
exchange tax fields, simplified consumption tax and simplified harmonised VAT as
some of the alternatives to GST implemented in Canada.

Nair & Eapen (2017)[17] investigated price control measures in GST regime by
comparing with the scenario of Australian GST. The study advocates that the Indian
GST can follow the GST model introduced in Australia so that consumers are assured
of benefits like price reduction, tax reductions out of input tax credits and compliance
cost reductions from the Indian model.
 57

Mehta et al.,(2020)[18] studied Tax evasion is very prevalent in several

countries. Taxpayers dodge taxes via deliberate and well-considered manoeuvres,
impeding the nation's economic development. Taxpayers delaying the filing of returns
is the simplest method of tax avoidance. Return defaulters are taxpayers who fail to file
their returns on time. This is the most audacious method of tax avoidance. They address
this issue by developing an example-dependent cost-sensitive deep learning model that
identifies probable return defaulters. This model accounts for example-dependent costs
and generates predictions to reduce the total price rather than the total number of
misclassifications. They demonstrate cost reductions of about 55% when using our
approach. This project was created and executed for the Government of Telangana's
Commercial Taxes Department.

Teik & Rahim (2020)[19] focuses on 14 carefully chosen news items from the
GST Malaysia Info website, which the previous administration set up to inform the
public on the advantages of the GST for the nation and its citizens by contrasting lexical
phrases with their experiential meanings. Basic corpus linguistic procedures must be
used to the collection, classification, and analysis of data. The data must also be
carefully examined utilising the researchers' interpretative resources, or "members'
resources." The qualitative analysis of this study shows that the public is persuaded to
"purchase" the new GST tax system as well as the nation-building ideology and rhetoric
that go along with the adoption of a more efficient form of tax collection.

Kotlińska (2018)[20] emphasised that the tax on goods and services (VAT) is
Poland's primary source of fiscal income, but a significant portion of the tax money is
not remitted to the state budget. The page contains a wealth of information on this tax,
the loopholes and leakages in its collection, and the efforts to strengthen its
enforcement. The author provides many statistical data from 2000 to 2017, comparing
VAT receipts to total tax revenues and overall state budget revenue, as well as the
quantities and structure of tax arrears and the tax gap associated with unregistered
economic activity. Additionally, the author discusses the measures made by state
authorities to improve tax collection.
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Santhariah et al.,(2018)[21] discusses some of the main problems and concerns

that Malaysian company taxpayers identified as significant obstacles in preparing to
introduce the GST. Between April and June 2013, a survey of 426 business taxpayers
from different small and medium-sized companies was performed (SMEs). The findings
showed that businesses were generally unprepared for GST implementation.
Additionally, although more prominent companies reported being well prepared for GST,
smaller businesses reported feeling more stress throughout the preparation process. It also
discusses policy implications for Malaysia's GST system, focusing on those that would
reduce compliance costs for companies.

Gautam et al., (2019b)[22] states Malaysia's/India government derives the

majority of its income through taxes. Thus, to boost government income, Malaysia's/India
introduced the GST in April 2015, replacing the SST. However, beginning in September
2018, the GST was repealed and replaced with the SST. The research will conduct a
literature review on previous tax changes. It will analyse data from academic
publications, newspapers, review articles, and other pertinent materials. The emphasis
will be on the GST and new SST implementation in Malaysia's/India from the viewpoint
of various stakeholders. The findings show that SST is much more compatible with the
Malaysian/Indian environment. This is because SST is tax-friendly for both businesses
and the Malaysian/Indian people. The results will add to the literature by elucidating
whether the Malaysian/Indian government's decision to return to SST is justified.

Sidik et al., (2019)[23] stated that bringing significant changes to an established

tax system is always a tedious process, much more so when they impact the whole
corporate world of one of the world's fastest-expanding economies. Many hidden taxes
are inextricably linked to the products that reach the general population. Implementing
the GST was the Government of India's most significant reform and daring move in recent
years. This study analyses the macro effect of GST implementation and the Indian
public's perception of GST. Using our theoretically inventive modelling method, they
conducted sentiment analysis on Twitter data gathered from all regions and states of India
during the Pre-GST, In-GST, and Post-GST periods. Numerous statistics are analysed to
justify this economic reform's impact on the Indian business landscape.
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Giesecke et al., (2021)[24] The economic implications of a GST rate increase and GST
base expansion for Australia's eight states and territories using a multi-regional general
equilibrium model and a multi-regional microsimulation model. They identify the states
and territories negatively impacted by the GST reform and discuss the regional
structural variables contributing to different regional effects. These results have policy
implications in light of Australia's GST structure.

2.4 GST AND ECONOMY

A. Ahmad & Aziz (2017)[25] assessed the implications and challenges of

implementing GST for India, focusing on the Indian export sector. A detailed analysis
of available literature and secondary sources found that GST benefits domestic traders.
At the same time, it is cumbersome for Indian exporters.

A. Jain (2018)[26] analysed the impact of GST in the state of Maharashtra. The
researcher argued that the introduction of GST would bring a substantial revenue loss
for the conditions and added that this new tax reform would help India attract many
foreign direct investments, making India an investment destination.

Adhana (2015)[27] attempted to explain to the general people the numerous

facets of GST and its likely economic implications. Through a comprehensive survey of
available literature and by taking an exploratory research approach, the researcher
concluded that GST would make the tax structure in India less complicated and more
efficient and further advocated that the government should take necessary steps to make
sure that information technology requirements of GST are made available.

Bala (2018)[28] investigated GST in India and its impact on the Indian
Economy. Through a a careful examination of available literature and secondary
sources analysis, the researcher found a significant association between growth, price
and current account with that of GST. It was also agreed that the GST would simplify
taxation and help the government raise money.

Basak (2017)[29] examined the Indian economy and the GST's broader policy
ramifications. The researcher viewed the GST implemented in India as progressive tax
reform and, with the support and analysis of reliable secondary sources, concluded that
 60

the proposed tariffs will make the taxation system more corruption-free and ensure
transparency in Indian revenue services.

Sadananda Sahoo (2016)[30] analysed how the taxes on goods and services will
contribute to the Indian economy's sustainable development. Through a comprehensive
survey of various literature, the researcher concluded that GST would make compliance
less complicated and more efficient. The researcher further added that the GST would
integrate the state economies and contribute to sustainable development in the long run.

Mishra (2017)[31] analysed the relationship between GST and economic growth.
The researcher concluded that reduced burden on the government, market expansion and
development, corruption-free taxation system, improved exports, and employment
opportunities as some of the benefits of GST that will contribute to the growth of the
Indian economy.

Sacchidananda Mukherjee (2015)[32] studied the current status of GST reform in

India. This paper argues that tax administration is equally important as tax policy. The
study highlights large-scale vacancies and lack of adequate infrastructure facilities as
challenges before GST implementation. The researchers concluded that the success of
GST heavily depends on tax incentives and administrative efficiencies brought by the
new taxation system.

Sanjoy Roy (2016)[33] investigated the fundamentals of the GST and its impact
on the economy as a whole. The researcher concluded that the GST would reduce the
prices of goods and proves to be a tax structure as it is more elastic and buoyant.

Shaik et al., (2015)[34] evaluated GST's operating method and the impact on
India's economic system. The researcher described that the operating mechanism of GST
is similar to that of VAT, and set-offs will be available only at the different manufacturing
stages as against the time of sale. The researcher further concluded that the GST would
lead to commercial benefits and contribute to the country's economic development.
 61

Shandilya (2013)[35]conducted an introductory study on GST and its potential

contributions to the Indian economy. The researcher described that the GST would
contribute to the economic growth with some commercial benefits, reduce the prices by
minimising the supply cost and facilitate equity and poverty reduction in the country.

Shanmugan & Champramary (2016)[36] Studied the implications of goods and

services for the Union Territory of Pondicherry, focusing on its contribution to the
revenue base. They concluded that the proposed GST will not benefit the Union
territory of Pondicherry and that ignoring experts' opinions on the GST amendment will
cause severe damage to the economy.

Suriyani & Mukaramah (2021)[37] analysed the broader macroeconomic effect

of this GST reform using a general equilibrium model (CGE). They discovered that
although the GST boosted government income and increased real GDP by
approximately 2%, it also maintained investment levels. Additionally, the GST
increases fixed investment, actual consumption, and welfare by lowering the consumer
price index by 0.2%. Because exports of locally made items are exempt from GST,
exporting goods and services increases the effect of the 6% GST.

2.5 GST BENEFITS

Dash (2017)[38] assessed GST‘s positive and negative impact on the Indian
economy. Using a literature review, the researcher discovered that the GST lower
inflation and eliminate the cascading consequences of taxes in India. The researcher
added that the services industry would become more costly, and goods prices would
decrease in the post-GST era.

Deb (2018)[39] adopted a systematic literature review approach to study the tax
reforms in India with a particular focus on GST implemented in India. Through a
systematic analysis of 119 research papers on GST and tax reforms, the researcher
concluded that the GST is expected to overcome limitations of existing taxation system
like cascading effects, rationalised tax system, non-compliance by taxpayers, tax
evasion problems, inflation, increasing mortgage costs and GST will be beneficial for
the economy.
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Deo (2017)[40] analysed the indirect taxation system in India and sought to
understand the proposed benefits and challenges of GST in India. GST would reduce
tax burden, lower product prices and eliminate tax obstacles while also expanding the
tax base, increasing tax transparency and improving exports according to the researcher,
who used in-depth secondary source analysis to get to this conclusion.

Khurana & Sharma (2016)[41] discussed the positive aspects of GST in India.
Through a careful examination of available literature and secondary quantifiable data
related to GST, they found that widening the tax base increased and improved tax
compliance, removing unhealthy competition, equal tax burden, uniformity in the tax
system, input tax credit, reduced cost of goods and services, removal of cascading
effects as some of the benefits of GST. They further suggested that awareness about
GST should be increased by organising conferences and seminars, and before
implementation, revenue concerns of the state should be addressed.

Jaiswal & Krishna (2017)[42] studied the GST in India. The researchers
considered GST as the mother of all the tax reforms in the country. The opinion is that
introducing a GST will facilitate the integration of the economy and will eliminate all
trade and economic barriers. They concluded that the GST is a win-win situation and
makes India one common financial market.

Anand Nayyar & Singh (2018)[43] conducted a comprehensive analysis of GST

in India. They presented a detailed background and concepts related to GST in India.
They found that the existing tax system will bring all taxes together under a single
window and ensure a more transparent taxation system in the country. They concluded
that GST would remove all state barriers, thereby paving the way for economic
development.

R. K. Rao & Chakraborty (2010)[44] seeks to estimate the base of GST

proposed in India. They concluded that the introduction of GST will enhance systematic
input tax credit and suggests that special care should be taken on activities to be brought
under the preview of GST and outside GST.

Raj et al., (2017)[45] analysed the financial impact of India's new tax system,
GST.Using various econometric and statistical models, they found that GST will
 63

generate the same tax revenue as the existing tax system if the standard rates are kept at
8%. However, if the rate goes beyond 9%, the study assures that GST will bring more
revenue to the government, and services will also add to the government revenues.

Mehta et al., (2019)[46] stated that Numerous indirect taxes are consolidated
into one, simplifying the taxation structure for service and commodities companies. As
an indirect tax, GST may provide many benefits to the economy. The article talks about
what GST means for the Indian economy and some of the problems, issues, and
challenges that come with it. One of these benefits is the effect on the GDP ratio. There
are also advantages in terms of competition, pricing, and consumption. This paper also
talks about the current GST rates, goods that are exempt from GST, problems and
challenges, and specific problems like lack of growth, complexity, filing fees, and many
returns.

Beemabai & Krishnakumar (2019)[47] GST is regarded as an indirect tax on the

whole country, making India a well-known market. It taxes the selling, manufacturing,
and traditional supply and service industries. It is the sole mandatory tax on delivering
goods and services from the producer to the purchaser. The credit for the contribution
of taxes paid at each level of value addition will be available at the next level, making
the GST a tax on each level of value addition. The end customers will only be subject to
the tax incentives offered by the last retailer in the supply chain, as well as the set of
paybacks stipulated for all prior construction stages. It is imposed at equivalent rates on
identical commodities at the national and state levels. It also replaces almost all current
indirect taxes imposed independently by the federal government and the states. The
GST is a destination-based tax collected at the point of production. This article
examines the effects and consequences of the GST on several business sectors.

2.6 GST PROBLEMS AND PROSPECTS

A. Kumar (2017)[48] studied the problem and prospects of GST in India. The
researcher found that the dual model of GST makes the indirect tax system more
complicated. The study highlights lack of state participation, ignorance of the e-
commerce sector, lack of a mechanism to track unregulated businesses and increased
cost of cash flow & working capital as some of the problems of GST introduced in
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India. The different researcher opinion that electronic assessment and compliance will
reduce corruption and tax evasion in the economy.

Abhishek et al.,(2019)[49] studied the future prospects of GST in India. They

concluded that it will facilitate the country for development and create an investor
friendly environment at domestic and international level

Ahamed & Rafiq (2018)[50] The effect of the GST on Indian enterprises has
been examined. Through haphazard sampling technique and a survey of the literature,
they discovered that the success of GST depends on the information technology
capability of taxpayers. They further suggested that the existing information technology
infrastructure should be improved to make this new tax reform less complicated and
more efficient for compliance.

Bhushan(2018)[51] studied the impact of GST implemented in India. Through a

comprehensive literature survey, the researcher concluded that GST would eradicate the
inefficiencies of the existing tax system and further ensures greater transparency and
improve compliance levels in the country. Additionally, the researcher added that the
GST would make India an investor‘s destination and is expected to bring the prices of
goods and services down in the long run to benefit the consumers.

Holla (2017)[52] conducted a comprehensive strengths, weakness, opportunity

and challenges (SWOC) analysis of GST in India. Through an extensive literature
survey, the researcher found that a simple tax system, revenue generation, common
market, and GDP growth are some of the strengths of GST, while the decrease in
purchasing power and shift in tax base are some of the weaknesses of GST in India.
Though GST poses challenges like fund sharing, threshold limits still offer potential
opportunities for businesses by removing cascading effects and consumer tax burden.

Kaur et al., (2018)[53] examined concerns surrounding GST implementation in

India. They determined that the long-term benefits of the GST would outweigh the
short-term costs and make the system easier to operate. Further, thy opinion that GST
will wipe out assessment costs highlights that the four-tier tax system is a weakness of
the Indian GST model.
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Morris et al.,(2019)[54] investigated whether GST is hurting the producing

regions in India. They found that GST is pulling producing states as there is a lack of
appropriate allocation and compensation design that will serve as incentives for making
states. Further attracting FDI is not federal-centric as regional governments play a
significant role in attracting that investment. Economic growth becomes questionable
due to a lack of motivation for local embedded manufacturing and trading services.

Purohit (2010)[55] studied the issues in GST implementation in India. The

critical issue highlighted are exemptions allowed, tax administration, threshold limit,
and special package for small dealers‘ exporters and concluded that a feasibility study
needs to be carried out to understand the nature of business transactions and
accordingly develop a tax administration system that makes the functioning of new tax
regime smoother and more manageable.

Sinha & Syed (2016)[56] analysed the pros and cons of GST in India. They
concluded that GST likely increases inflationary conditions and is a curse for the lower-
income group as it has increased the incidence of taxes.

Sushma. C (2018)[57] examined the GST implemented in India and its

challenges post-implementation. The author concluded that the implemented GST lacks
transition and created many teething problems in the society due to technical
amendments and frequent revisions in tax rates.

Sujith (2016)[58] analysed the prospects and challenges of GST to be

implemented in India and concluded that the tariffs would improve the overall welfare
of the Indian economy and achieve inclusivity, thereby making the Indian economy
much more vital.

Priya (2017)[59] viewed GST as a game-changer in the Indian taxation system.

The researcher concluded that the transition from a diversity of tax regime to a single
tax regime had brought specific problems like revenue sharing issues, lack of
uninterrupted network access, delays in refunds, and increase in working capital cost,
which needs to be addressed to reap GST‘s benefits in the long run.
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2.7 GST OUTCOMES

Jadhav & Chaudhari (2019)[60] investigated the aftermath of the GST

implemented in India. They found that after GST implementation, there was a
considerable reduction in transaction costs for businesses, and they could avoid abnormal
losses. They further added that GST eliminated multiple taxes, tax burden and corruption,
making India a common economic market.

Manuranjan Gogoi (2018)[61] analysed the structure, challenges and outcomes of

GST in India. The study highlights transparency in the tax system and minimised burden
as benefits of GST to consumers. The study further described that in the post-
implementation period, the growth rate of GST has gone down and suggests better
administrative efficiency and information technology infrastructure development for
better results.

Mujalde & Vani (2017)[62] analysed the aftermath of GST in India. The study
found that aviation and industries are the losers of the GST and remarked that if GST
surpasses 15%, all the services will become costlier. They suggested that a single-rated
tax will ensure equality among goods and services and transparency in the system. The
study further concluded that GST is a complicated tax structure and will bring economic
distortions.

2.8 GST MECHANISM

Gaurangkumar C. Barot, (2017)[63] studied the conceptual framework of GST

with practical illustrations and solutions on input tax credit and concluded that GST, by
consolidating 17 central indirect taxes in India, will facilitate India in achieving “One
Nation One Tax”, thereby contributing to the development of Indian economy.

K. Rao (2009)[64] studied about GST in India. The study identifies the treatment
of interstate transactions, tax integration, tax administration, and tax rates as some of the
issues addressed by the GST proposed to be implemented and suggests assignment of tax
powers should be carefully done to make this transition a better prospect for Indian
economy.
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Kar & Sahore (2018)[65] conducted a review on the relevance of Harmonized

System of Nomenclature Codes for the indirect tax system in India. The opinion is that
by using HSN codes as a part of GST implementation, India will achieve recognition
and acceptance of this tax reform at the international level and further make this tax
system more accessible and less complicated.

Madathil & Ashitha (2019)[66] assessed the pre-and post-implementation

effects of GST on consumer price index in India. The study indicates that the consumer
price index has gone up by 5.9% after implementing the GST and suggested that the
government should take steps to curb inflation arising from the GST implemented in
India.

Mohanty & Chandran (2017)[67] took a peripheral perspective of GST and

investigated the country's indirect tax system shift. They found that while technologies
simplify the consumer-industry interface, flaws in pricing mechanism & disparities in
the billing system have hit the economy badly and suggest the need for efficient
monitoring and administration of business transactions to reap its benefits.

Pavani (2017b)[68] studied about formulation and implementation of GST in

India. The study highlighted different dimensions of GST like the concept, HSN codes
and working mechanisms. It concluded that the GST would help consumers by
increasing transparency in the collection of taxes and the opinion that economic
stakeholders need to wait to see the benefits of the GST.

Bhaskar (2021)[69] said that the 2017 IGST Act and the GST (Compensation to
States Act, 2017) are studied in detail to detect the distortions that have entered into this
devolution route. These issues may be resolved effectively if current laws are enforced
thoroughly and consistently

Gautam et al., (2020)[70] stated that GST is the most significant tax reform in
the Indian economy's history. Over 164 nations have adopted GST so far. and The
Goods & Services Tax (GST) is meant to be a legal system that takes into account the
expenditures made on the sale, manufacture, and consumption of goods and services
across the nation, principally by several industries and enterprises. GST is levied at five
different rates: 0%, 5%, 12%, 18%, and 28%, as indicated by the item's HSN
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(Harmonized System of Nomenclature) code. GST is anticipated to benefit the Indian

Pharmaceutical Industry, as it is assumed that reducing the cost of medications, as eight
distinct taxes are levied on the pharmaceutical industry, would aid company growth.
Apart from the beneficial effect, some negative impacts must be mitigated. A drug
management notice is being published to ensure that the prices of excellent medications
are reasonable for everyone. GST is expected to impact the Pharmaceutical Industry's
business strategies in India significantly. Additionally, it is noted that the
implementation of the GST would revitalise India's pharmaceutical sector via increased
transparency and price optimisation of medications.

Sahu & Shukla (2017)[71] studied GST reform from the constitutional
perspective. They concluded that the GST would pave the way for a harmonious tax
structure by giving importance to federalism's state and central government powers.
Further, they suggested it will take a long time to reap the real benefits of GST for the
economy.

Yadav & Kumar (2018)[72] studied India's comprehensive framework of GST

and its challenges. Through the analysis of secondary data, the author concluded that
reduction in multiplicity of taxes and free movement of goods and services are the
intended benefits of the tax. They further concluded that the existing GST would
facilitate the country's sustainable development.

Ganesh (2019)[73] examined the GST implications on tax collection. For this
purpose, researcher used tax buoyancy method. It was found post GST implementation;
tax revenues have become less sensitive to GDP. Further, GST has reduced consumers‘
and business burden. The study suggested government to take measures to boost
revenue collection.

2.9 GST AND SENTIMENTAL ANALYSIS

Pasha et al., (2021)[74] conducted an investigation into the issues of GST

implementation and the development of a blockchain-based solution, GST Chain. Taxes
are currently collected at the point of sale in India and are split between the federal and
state governments. An open-source blockchain technology designed to make tax
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collection easier for governments and individuals alike, GST Chain is based on the
principles of trust and self-determination.

S Mukherjee (2020)[75] utilised a time-variable truncated panel Stochastic

Frontier Approach (SFA) to assess the functions from 2012–13 to 2019–20. The study's
results show that the capacity of states to implement a GST depends on the size and
structure of their economies. Although the impact was minor, the implementation of
GST reduced states' capacity to collect GST. According to GSTN statistics, high-
income states have less GST capacity, whereas low-income states have more capacity,
while all other factors remain constant. If state PCI and tax efficiency are non-linear,
the latter lowers and rises as the former grows. Tax efficiency is lower in small states
(states categorised as special categories and UTs with legislative assembly).

Dhar & Khandelwal (2020)[76] Conducted a bibliometric analysis of existing

research studies of GST. For this purpose, data between 2004 to 2019 were retrieved
from Scopus database and only most cited articles, reputed authors, studies with
multiple nations and organisations only were considered for analysis. The results
showed that the research studies on GST have increased consistently and a rapid growth
after 2015. They concluded that it is a potential area of research in future.

Dhanya Abhirami & Govinda (2019)[77] uses interpretative structural

modelling (ISM) to ascertain the driving and dependent nature of various obstacles to
building a structural model. According to the analysis's findings, the main challenges to
GST implementation include a lack of trained personnel, a lack of clarity about GST
rules, political reluctance, and a lack of strategy for appropriate tax division. Along with
the initial research, MICMAC is used to classify the obstacles into four groups based on
their respective driving and dependency powers.

Sailaja et al., (2018)[78] GST is a standardised indirect cost levied on goods and
ventures throughout a country. Over 160 countries have implemented the GST. The
GST became effective on July 1st, 2017. As an umbrella tax, GST has replaced specific
levies such as Central Excise Duty, Service Tax, Other Excise and Customs Duties,
Special Additional Customs Duties, and cesses and additional charges on the delivery
of goods and services. Introducing the GST will be a watershed moment in India's
 70

history of strange tariff adjustments. By unifying a wide variety of Central and State
taxes into a single charge, GST is supposed to simplify double tax collection and make
tax assessment for companies easier.

Gupta & Gupta (2018)[79] described GST, the Indian government's tax reform.
GST aims to eliminate inconsistencies between various kinds of taxes and create a
unified platform for them as part of the Indian government's "one India, one tax" policy.
The objective of this research is not only to understand it, but also to comprehend the
challenges that the various GST stakeholders will face. In addition, this chapter
discusses the key benefits for the organisation's stakeholders. The online approach for
the GST has also been extensively explored.

Salim et al., (2019)[80] studied the effect of the July 1st, 2000 GST and the
accompanying wine tax change on the premium and non-premium segments of the
grape and wine industries using an Australian CGE model. Input costs for the wine and
grape industries are likely to fall as a consequence of the GST tax package. As a result,
even if the GST just slightly raises the tax on wine consumption, the sector might still
make a difference. Those in the premium wine market, which is heavily focused on
exports, know this all too well. Wine's revenue-neutral volumetric tax under the GST
benefits the industry's premium segment, but the non-premium segment's price also
rises as a result of the move away from the present ad valorem tax.

P. Singh et al.,(2019)[81] Using a case study method, there were six main types
of GST fraud found: false claims, sales manipulation, not sending in GST forms, not
registering for GST, not paying GST, and carousel fraud. There are a lot of similarities
between the GST fraud in Malaysia and fraud in other industrialised and developing
countries. This study suggests that the government needs to be careful and take action
to stop GST fraud. The research helps with tax administration and the progress of
knowledge by showing how a new tax policy affects indirect taxes like the GST, which
helps stop fraud.

Dutta & Kumar (2018)[82] added that throughout the postcolonial period, many
developing / rising countries used indirect taxes to expand the tax base and achieve
horizontal equality. However, leakage in the form of evasion has posed a barrier to
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achieving these goals. It continues to do so even after half a century of continuous

churning by tax architects to find the optimal answer. The ease with which escape
occurs suggests a gap in the technique's "lab to land" transfer. From a theoretical
perspective, the GST, which is based on the principles of value-added tax, has the
potential to alleviate much of the malaise associated with VAT in a federal polity while
also providing the necessary bridge for an informal economy to transition to the realm
of formalisation in the long run.

Bidin et al., (2019)[83] Although India has the third-fastest economic growth
rate in the world, it could be far quicker with an ideal tax structure that collects taxes at
all phases of manufacturing, supply, wholesale, retailing, and ultimate consumption.
These taxes, which are paid in stages, are not applied to the total price but just to the
value-added. With this in mind, India implemented a new taxing system known as GST
to replace the old tax system, which was inefficient and slowed economic development.
The new taxes structure impacted numerous areas of industry. Multinational
corporations (MNCs) have also undergone adjustments. This article discusses the
import-export of MNCs, the imposition of customs duties on MNCs, and the different
impacts on distinct MNCs.

Dey (2021)[84] Examined the general implications of GST on tax revenues and
specifically for the state of Odhisha. Researcher used Exponential Triple Smoothing
Function and found that indirect tax revenues are increasing over the years and
pandemic has posed some administrative complexities. It was also found that the
Odisha was not to raise its projected tax revenue and its fiscal position will further
weaken if compensation cess was stopped from July 2022.

2.10 GST INDIA AND INTERNATIONAL COMPARISON

Kapasi (2017)[85] A comparison of the GST introduced in India and Canada.

By comparing, the researcher found that Indian GST is a dual model emphasising
digital transactions, and any additional tax policies do not back them. However, the
Canadian model of GST is accompanied by Provincial Sales Tax (PST), making it more
complicated than the Indian model of GST. The researcher concluded that the Indian
GST is more scientific in tax administration and compliance than the Canadian model.
 72

Pavani (2017a)[86] did a comparative analysis of GST implemented in other

countries. The author concluded that India had adopted the Canadian model of GST
with modifications that suit the country's economic conditions and further stated that a
single indirect tax regime is best suitable for countries like Canada and India.

Panda & Patel (2012)[87] investigated the impact of GST on the Indian tax
system. The study highlighted a superior and efficient method of increased revenues, a
potential consequence of GST. It concluded that the tax was a boon for the Indian
economic and taxation system.

2.11 GST AND BUSINESSES

Khan (2018)[88] studied the psychological implications of GST on small

businesses in India. They concluded that the small businesses are not ready for this
change in the taxation system and opinion that the success of GST depends upon the
adaptability of the nation in terms of technology, compliance and business support.

Pope (2001)[89] studied the compliance cost burden for small businesses under
the GST regime. The study finds compliance and start-up costs have increased after
implementing the GST. The study further suggests monetary compensation, raising
threshold limit, payment arrangements as de facto compensation measures and
promoting tax education as some steps for alleviating the compliance costs burden for
small businesses.

Raja & Krishna (2018)[90] investigated the implications of GST on goods

transport agencies in Tamil Nadu. They found that many unregistered transporters will
be brought under the GST regime with the tax implementation of the goods and
services. They further argued that lack of expertise, compliance issues, and increasing
costs are some of the problems transport agencies face. They concluded that the
government successfully addresses minor business concerns and that the transport
sector will have a bright future once the economy revives from the aftermath of
demonetisation.

Sawant Dessai (2017)[91] studied the impact of GST on marketing and

concluded that GST would boost marketing and result in product cost, distribution
 73

costs, storage costs and minimise the distribution time, thereby making India a unified
market.

T. N. A. Kumar & Nagwand (2018)[92] A comparative analysis of retailers'

profit and sales potential in the pre and post-GST regime. They found a considerable
reduction in sales and profit potential of retailers in the post-GST administration. They
concluded that retailers lack knowledge about GST introduced in India.

V.S.Sivasakthi (2018)[93] analysed the impact of GST on home buyers in India.

The researcher concluded that the GST would reduce the consumer tax burden, increase
government revenue, further facilitate exports and foreign direct investment and helps
the government in controlling the fiscal deficit.

Guna & P.S (2021)[94] clarified the aspects of GST in connection to

possibilities for small and medium-sized companies, international experiences, and
difficulties facing small and medium-sized firms in India. They concluded that one of
the most important conclusions is that the impact of GST on MSMEs across different
sectors will be varied and would vary by state's politically sensitive industry. They
added that the study is a foundation for future research and assists MSME owners and
policymakers make educated choices.

Harishekar & Manoj (2021)[95] severely analysed how GST has affected small
businesses, especially in Karnataka. According to existing research, GST should make
doing business less expensive, increase transparency, decrease the cost of products,
increase tax compliance, and make doing business easier. Through the use of source
data, this study provides evidence for several of these ideas. Additionally, it emphasises
the need for revisions to the way that the definition of a job activity and labour activities
are separated, penalties for GST non-payment, dual administration, and issues left over
from the old tax system. Additionally, it has been shown that the composition system
has been a non-performer, necessitating the subsequent introduction or modification of
the reverse charge mechanism in order to balance its benefits and drawbacks. The study
gives a deeper understanding of the new tax structure and has implications for policy
makers, companies, and academics.
 74

M. Kumar et al., (2019)[96] explores the situation and advancements of MSMEs

in India at the present time. Since each of these industries will continue to be essential
for the growth of the GDP and the generation of jobs, the Micro, Small and Medium-
Sized Enterprises (MSMEs) sector must expand in all sectors of agriculture,
manufacturing, and services. This socioeconomic shift will be sparked by the Micro,
Small, and Medium-Sized Enterprises (MSMEs) sector.

Sandhu & Atwal (2019)[98] examined the impact of the GST on the exports of
Indian carpets and flooring. The Central Excise Tax, the Value-Added Tax/Sales Tax,
and the Service Tax were a few of the previous levies that the GST totally eliminated,
in addition to offering full input tax credit. The subsequent impacts of the GST are
susceptible to several uncertainty. This research aims to estimate the effect of the GST
on the average exports of the carpet and flooring sector over a two-year period. The
data are analysed using pairwise t-tests, and the results are obtained using SPSS. It is
essential to establish if the transition from VAT to GST is possible and practicable. As a
result, scholars and lawmakers attach more importance to this study.

Haron & Ayojimi (2019)[99] highlighted how the Make in India initiative,
which was launched in 2014, has been affected by the GST, a key tax reform that was
enacted in India in July 2017.The GST is anticipated to influence eight factors:
warehouse efficiency, interstate checkpoint operations, transition from informal to
formal business, interstate business expansion by micro, small, and medium-sized
enterprises, simplicity and transparency in tax collection, logistics cost reductions, ease
of doing business in India, and working capital cost realignment. This article uses a
system dynamics method to examine the effect of GST variables on the Make in India
programme and industrial growth. Numerous simulations run utilising system dynamics
modelling have given policymakers and strategic planners significant insights for
developing industrial development plans.

Garg & Anand (2019)[100] With the introduction of the Purchase Manager
Index, macroeconomic forecasting in India became more scientific and precise,
particularly in the manufacturing sector. Because the index considers all stages of
inventory accumulation, from raw material purchases to final factory output, it was
deemed more illuminating than the Index of Industrial Production, which solely
 75

considers factory output. Monthly PMI data indicates the manufacturing sector's and
country's prospects, making forecasting simple and accurate. This research examines
the pattern of secondary data derived from PMI and IIP over eight quarters to predict
India's GDP using PMI forecasting. Using multiple regression and time series analysis,
the presumptive relationship between PMI and GDP is used to forecast potential GDP
for FY 2018-19. The research discovered a significant positive correlation between
GDP and PMI but an unexpectedly weak correlation between IIP and GDP.

Shukla & Singh (2018)[101] conducted an empirical analysis of businesses'

performance after one year of GST implementation. The appropriate sample was
obtained using probability sampling. The study included 192 BSE-listed firms.
Financial factors (total assets, earnings, and market capitalisation for fiscal years 2017
and 2018) and demographic variables (company size and experience) were utilised to
assess the effect of GST implementation. The findings showed that only total assets
were substantially different from pre-GST levels for all three financial indicators
(FY2017). Further research revealed that the age and size of the business also
influenced the equation and were shown to have a substantial effect on the performance
of companies after GST adoption. This paper discusses the detailed analysis and
findings in more detail. The study provided fresh insights into the impact of the new
indirect tax system on the financial performance of businesses, thus filling a research
vacuum. The study's findings will assist policymakers, strategists, and managers
overcome the difficulties presented by GST.

Liang et al.,(2019)[102] observed that the introduction of the GST has had
varying effects on different services. In the IT industry, cascading taxes have been
eliminated, and the "One Tax, One Nation" principle is followed. For businesses that
sell software online, it has made things clearer since it explicitly describes goods and
services. Less money is spent by service providers as a result. The cost of input
equipment has decreased. But today, businesses must pay CGST and register in every
state they choose to do business in. Due to decentralised registration, it also follows that
filing taxes and keeping track of finances becomes difficult. Although there weren't
many advantages relative to the expense, the report did mention several additional
perks.
 76

Paliwal et al.,(2019)[103] Assessed the role of the GST as a tax reform in

fostering the sustainable expansion of the Indian handicrafts industry. The GST was
established on July 1st, 2017 to simplify the country's tax system, fiscal framework, and
Indian Market, as well as to promote sustainable growth. It's an all-inclusive value-
added tax that includes VAT, service tax, surcharges, and CST. This study will assist
future academics, merchants, and exporters in comprehending the impact of the GST on
the handicraft industry. The GST, tax rates, and exports covered by the LUT/bond are
accessible to exporters and merchants. As a result of the conclusions of the research, the
government may gain from the future growth of the GST. In India, the GST is a
relatively recent tax reform, with just a handful of research publications accessible.
According to the researcher, a few studies have been undertaken on GST and the
handicraft industry, but none on this specific issue. This report reveals previously
hidden facts and figures on the effect of GST on the long-term growth of the handicraft
sector.

Kumaraswamy (2020)[104] studied the restrictions on working capital imposed

by GST on small and medium-sized businesses. Models integrating the key functional
capital components, such as collection and payment averages and inventory conversion
periods, as well as the effect of the GST, have been built. The article's mathematical
model was tested using the Random-effects GLS approach. The results of the study
demonstrate that the production capacity of the SMEs had declined throughout the
sample period, collections and payments had been delayed, profit margins had fallen
and credit requirements had increased. Using the findings of this research, policymakers
and financial institutions in India would have a better understanding of how to help
small businesses recover from this hard situation.

2.12 GST AND STOCK MARKET

Pali & Pal (2017)[105] conducted a literature survey about the implications of
GST for the Indian market. The study highlights that decreasing the number of
roundabout duties, lesser compliance costs, and a corruption-free economy are some of
the objectives of the tax on goods and services. At the same time, it proves to be a
disadvantage for asset and loan financing companies due to increased service costs. The
researchers concluded that the existing GST model should be improved in the
 77

assessment framework, and efforts should be made to bring in all products, including
alcohol, in the preview of GST.

Thumma et al.,(2020)[106] Through the development of analytical models, their

article examined the effect of selected manufacturing and service small-to-medium
business (SME) stock returns on the National Stock Exchange (NSE) before and after
the introduction of GST. The Statistical Package for the Social Sciences is used to build
linear regression models (SPSS). These algorithms are utilised to determine the SME
stock that had a significant impact on the NSE Emerge before and after the introduction
of GST. The government introduced GST to create a single national tax system and
reduce tax evasion. With greater openness, the GST system reduces paperwork and
procedural compliance. In general, the customer will gain from the GST since it will
allow products to flow freely across the nation without being burdened by numerous
taxes.

Thirunarayanasamy & Karuppusamy (2019)[107] stated that the GST

announcement caused intraday market volatility. Daily closing prices and intraday data
are used to measure stock market volatility. An empirical estimate is produced for pre-
and post-GST announcements from June 2009 to November 2016. Empirical research
shows that market volatility remains and is greater after the GST announcement.
Market response to tax policy is evident here. The post-GST release supports market
projections of a rise in the cost of living due to higher pricing of products and services
in Malaysia. Practicableness: According to this study, the market believes that GST
would raise the price of products and services, therefore rising the cost of living. The
stock market's increasing volatility following GST introduction confirms this. Even
while the GST announcement may have been pre-planned, the stock market turbulence
demonstrates that hostility to the proposal lingers. Asian and global financial crises
have been researched to explain stock market volatility, but this study focuses on the
GST announcement and intraday data.

Muthukamu & Amudha (2020)[108] - Auto industry businesses listed on Indian

public markets were compared before and after the adoption of GST to better
understand the effect on the Indian equity market. From February 20th to November
9th, 2017 (90 trading days previous and after the adoption of GST), they used the
 78

closing prices of the National Stock Exchange's auto sector index on a daily basis
(NSE) to analyse the volatility of auto sector stocks. They discovered that the car
industry's returns were harmed, and they discovered anomalous spikes in volatility after
the implementation of GST in India.

2.13 GST AND DIGITALIZATION

P. Roy & Khan (2021)[109] examined digital taxation as an application of a

broader issue about the use of digitisation as a tool for formalisation, drawing on data
from India's implementation of the GST. The authors differentiate between different
kinds of norm breaches in emerging economies by studying political settlements. When
networked higher-capability businesses break regulations to collect rents, they engage
in 'informal' transactions. This is in contrast to the informality of unregistered micro and
small businesses in the informal sector, which often breaks regulations they cannot
comply with and make everyday payments to enforcers to continue functioning. When
digital technologies are employed in these settings, negative consequences for welfare
and inclusion may occur due to 'premature formalisation.' A more careful and inclusive
approach to formalisation is required to safeguard vulnerable populations.

Agrawal & Fox (2021)[110] highlighted challenges faced by tax authorities

related to tax consumption in the digital economy. They found that destination-based
tax has shifted tax revenue sharing between central and state governments. Online
shopping during pandemic is also a contributing factor according to the study. It was
found that online shopping boosted tax revenues for the state while making it
unfavourable for the central government. The study further stated that minimising
compliance and administrative costs, threshold limits, taxation of digital services would
be future issues that needs to be addressed.

2.14 GST AND FMCG SECTOR

Agarwal (2018)[111] explored how GST affected the FMCG sector's pricing
and distribution strategy. Using secondary sources, the researcher performed a thorough
investigation and determined that GST seemed to assist the FMCG industry. The
FMCG industry gains from the reduction of costs, the enhancing operational
 79

effectiveness and implementing a redistribution approach by the industry's major

participants.

Ajeev & Somasekharan (2019)[112]analysed the effects of GST on the FMCG

industry and the viewpoints of key players on the consequences of GST. In order to get
their thoughts on GST, they employed convenience sampling to distribute
questionnaires and determined that it has lowered costs, prices, and transit times. In
addition, they discovered that firms' technical and legal expenses had risen since the
implementation of GST.

Alappatt & Shaikh (2014)[113] analysed the public awareness and government
assertions towards the GST implemented in Malaysia. They conclude that the proposed
GST will help the Malaysian government increase its tax base and minimise the current
tax burden experienced by Malaysian citizens.

Barot (2018)[114] analysed the impact of GST on the FMCG industry. The
study found that by using a wide range of secondary data, we can determine that GST is
an advantageous tax policy for this firm and that the tax rates are not excessive. As a
result, the general public stands to gain from the exclusion of regular goods from the
GST.

Chavan (2017)[115] examined the implications of GST on Indian firms in his

study. The researcher honed in on the fast-moving consumer goods (FMCG) industry.
GST is expected to have a substantial influence on FMCG firms' supply chain
management and accounting information systems, according to the researcher, who
drew this conclusion after consulting public and unpublished sources.

D. A. Jain & Vidhi Sharma (2017)[116] They investigated the impact of GST on
rural sales and marketing of the FMCG sector. Through a comprehensive analysis of
secondary sources and theoretical background of GST, they found that the industry's
demand and supply side is expected to increase and concluded that a rural population
that dominates India would be a boon for the Indian economy.
 80

Elavarasan & Jagadeesan (2018)[117] The effect of India's GST on the FMCG
industry was examined. Secondary data analysis revealed that GST will lower
distribution costs, allowing businesses to boost output and lower prices for consumers.

Kotnal (2017)[118]examined how the GST concept may be applied to the FMCG
industry. Experimentation led to a recommendation to establish an effective vendor
system by adhering to GST rules, which would allow for more efficient business
operations for organisations.

Naik & Sudina (2017)[119]Inquired into the impact of GST on the FMCG
industry from a variety of viewpoints. They found that GST will affect every aspect of
company and recommended that enterprises employ a 'whole of business' strategy to
smoothen their business processes via extensive and in-depth research of secondary
sources.

Rekha D. M & Swathi (2019)[120]analysed the link between GST and the FMCG
industry study. They discovered that GST significantly decreased transportation and
storage expenses, but that post-GST working capital needs have increased. They also
came to the conclusion that GST reduced the amount of money FMCG customers had to
spend, which caused them to alter their purchasing choices.

Shinde (2019)[121]researched the legal foundation of the Indian GST legislation

and its impact on various economic sectors. These economists came to the conclusion
that the introduction of GST will help India become a more integrated financial sector.
In addition, they said that the GST will help boost India's efforts in the areas of Make in
India and Digital India.

Chakravartula & Rukkumani (2020) [122]claimed that the majority of our direct
and indirect tax revenues come from consumer durables. Fast Moving Consumer Goods
(FMCG) are a substantial component to GDP (Gross Domestic Product). The fast-
moving consumer products industry would be significantly impacted by the Products
and Services Tax, which absorbed the majority of the country's indirect taxes. In order
to evaluate businesses in the food and beverage sector, this article discusses the
increasing impact structure of GST on FMCG. As a consequence, tax evasion would
decrease and the GST would steadily increase. The findings show that the advanced
 81

effect structure of GST on the FMCG company improves growth in rank-ordering,

customer awareness, and satisfaction when compared to the GST sector.

John & Dauchy (2021)[123] Analysed the transition from old indirect tax
system to GST. They found that GST increased the cost of cigarettes and SLT.
However, it has not affected the adaptability of SLT. They further suggested that a
substantial increase in excise taxes and the compensating cess - a temporary charge in
addition to GST - is required to decrease affordability effectively. To solve India's
massive tobacco usage issue, bidis should be imposed a compensation.

Gaurav et al.,(2020)[124] remarked that Since 1947, the indirect tax system has
undergone a number of changes, with the GST being one of the most significant. GST,
often known as a destination-based tax, is imposed at the site where goods are
delivered. Based on the Dual Tax system, the national and state governments will
divide the tax burden. State Goods and Service Tax (SGST) is the state's component;
Central Goods and Service Tax (CGST) is the central government's portion (SGST).In
order to establish uniformity in India and enact one tax for one nation, the GST is
intended to replace a number of other indirect taxes. The backdrop and effects of GST
on FMCG, the fourth-largest sector of the Indian economy, are highlighted in the paper.
FMCG is made up of 30% of the household and personal care industry and 50% of the
food and beverage business. The research also looks at several GST benefits and
opportunities. The paper then analyses its findings and draws a conclusion.

Kotishwar(2020)[125] observed that with the introduction of GST in 2017, the

Indian government's tax changes ushered in a new tax system. This research aimed to
ascertain retailers' perceptions of the efficacy of GST implementation. The study
gathered primary data from merchants that submit monthly GST returns. The research
collected preliminary data through a structured questionnaire using a simple sampling
technique. The research investigated retailers' perceptions of the efficacy, awareness,
and challenges associated with the GST. The study used discriminant analysis to
examine perceptions and discovered that perceptions are favourable when the GST
enhances the tax's simplicity, ease, and transparency. The SEM was constructed to
determine merchants' knowledge of the efficacy of GST, and the outcome indicates that
 82

revenue growth increased after the introduction of GST. While shops complete the
GST, they face day-to-day operations associated with updating it.

Khoja & Khan (2020)[126] Claimed that India introduced GST to prevent
cascading effects. In this research, they examined the aftermath of GST tax collection
and in preventing cascading effects with the help of simultaneous equation model based
on the time series data for the period 1990-2017. The results proved that GST has
eliminated the cascading effects and increased revenue collection efficiency.

Ghosh (2020)[127] by examining problems of coverage, rate, selection, and

exemption of taxes, their research uses information from field surveys to highlight the
impact of the GST primarily on micro, small, and medium-sized organisations and, as a
result, its influence on the competitiveness and viability of these businesses. The units'
attempts at coping mechanisms to get past their obstacles and the GST Council's
responses are also covered.

Walpole (2020)[128] examined the GST rules required to apply to cross-border

supplies in several countries. It highlights the immensely changed technological
environment in which the GST continues to operate in Australia since the GST was
introduced in 2000. The new regulations established in Australia are reviewed in light
of worldwide practice. It is determined that Australia was at the forefront of attempts to
apply the tax to internet platform providers. The point is also highlighted that the
success with platforms lends itself to enable taxation of the ‗sharing economy' similarly
should the choice be taken.

Hill (2020)[129] responded to two pieces published on the 20th anniversary of

Australia's GST administration. Concerning the administration of GST rulings during
that period, the author takes issue with some of the ATO's performance assessments and
seeks to highlight ongoing issues with (a) the continued use of 'foundation' GST public
rulings; (b) the absence of any stated period for any GST private ruling and the
resulting issues of continued reliance by taxpayers; and the issues associated with (3).
The author examines the ATO's effectiveness in closing the vast GST gap highlighted
in one of the articles and concurs that the GST refund procedure remains too
complicated.
 83

Smith (2020)[130] stated that GST revenues collected by the Commonwealth

Government in Australia are paid in full as untied revenue transfers to the State and
Territory governments. The hypothecation of GST funds in this manner offers a
reasonably solid basis for federal financial ties in Australia. However, Australia's
federation has been characterised by a continuous change in the vertical distribution of
government activities, expenditures and revenues. State fiscal stability is potentially
susceptible to these shifting conditions. The benefits and drawbacks of the GST revenue
arrangements have evolved since the GST was established in 2000, with consequences
both for the GST as a tax and for the development of the Australian federation. This
article examines these advancements and some potential future paths.

Evans (2020)[131] considers the GST's objectives as part of the A New Tax
System reform package, assesses its performance over time, and finds that Australia's
GST system is not a sustainable, resilient, and dependable income source for the States
Territories it was meant to be. After examining the design characteristics and scope of
the GST system, it is concluded that the current GST system is unlikely to deliver the
dependable income stream required to be the primary source of future revenue to meet
the States' and Territories' expenditure requirements. Additionally, the revenue
projections suggest that the States and Territories' strong and rising income stream is
unlikely to be reached by widening the base and raising the rate. However, by
addressing several 'policy holes' in the GST system, income from GST may be returned
to its original 4% GDP level. However, fraud, evasion, and noncompliance are inherent
flaws in every value-added tax system. The article examines modifications to the GST
system compatible with the Task Force recommendations and the worldwide
architecture of VAT systems to prevent future loss of GST income. Finally, the essay
discusses whether Australia would be better off sticking with a value-added tax system
or exploring if other options would provide governments with the dependability,
stability, and sustainability they need.

T Maheshwari & Mani (2020)[132] empirically assessing the benefits of the

GST implementation in India from the perspectives of several stakeholders the study
looked at the current literature to identify specific benefits of GST implementation in
India. Analysis of the AHP approach is subsequently performed on the discovered
 84

thirteen advantages. Respondents used a 9-point scale to compare and score matched
variables. The responses of 30 stakeholders were analysed to establish the relative
importance of each criterion. Academics and politicians may utilise the findings for a
variety of reasons, from academic to administrative, to justify the introduction of GST.
"Elimination of cascade effect" and "improvement of threshold limit" have been shown
to be very important in the study. In the long run, GST is expected to be beneficial to
the economy.

N. Singh et al.,(2019)[133] stated that without a doubt, all economic studies

seek to comprehend a tax system; nevertheless, in a democratic society, the taxpayer's
impression of the new taxation system and the evaluation and compliance with tax
regulations and laws are equally important. The research aims to assess the effect of
GST on business owners and the issues they face as a result of the tax. The current
study examined the impact of GST on 140 company owners in the Dindigul area of
Tamil Nadu. The research discovered that GST disproportionately has unfavourable
effects on different economic operations. To quantify the effect and variance in the
impact of GST, data from structured questionnaires were analysed using the impact
index, ANOVA, Chi-square test, and multiple regression techniques. The findings of
this research may be very beneficial to tax authorities and taxpayers.

Chandren et al.,(2018)[134] The relationship between corporate governance and

operational performance was examined before and after the GST's introduction. Using
agency theory as a foundation, this article offers six hypotheses about the connection
between corporate governance and functional performance (SG and CR) during and
after GST adoption. Their relationship's nature should inform all stakeholders about the
effect of corporate governance on operational performance. This demonstrates the
effectiveness of management in carrying out their responsibilities to improve
operational performance, especially during adopting a new financial or tax policy that
necessitates modifications to company operations. It demonstrates Malaysian corporate
governance's commitment to and adoption of GST for the firm's and country's long-
term growth. In summary, for a GST to be business-friendly, it must have an efficient
governance structure that supports the firm's operational system.
 85

C. B. N. Rao & Neeraja (2018)[135] analysed the goods and service tax in India
and its effect on the business climate. GST is the only indirect tax that impacts all
segments and industries of our economy. In this new tax system, commodities and
services are taxed equally. Its objective is to create a unified market that benefits the
economy, businesses, and people. As a result, the study's primary aim is to analyse
consumer preparedness, perceptions, attitude, and acceptance of GST. Second, examine
the purchasing habits of individuals in the medium income bracket. The data collection
method is a systematic survey of middle-income earners. Respondents were selected at
random from a variety of organisations, both private and public, in a variety of places.
This research provides information to the appropriate government authorities to create
measures to alleviate the financial strain on middle-income earners.

Fernando & Chukai (2018)[136] examined the implications of GST in value co-
creation and performance of logistics. For this purpose, 145 logistics LSPs were
surveyed in Malaysia based on stratified random sampling. It was discovered that open
discussion and restricted access partially supported value co-creation for SLPs. They
further stated that LSPs could not overcome difficulties created by GST and it has
decreased their capacity to compete globally.

Banerjee (2018)[137] emphasised that E-commerce has grown significantly in

India during the past decade. A variety of indirect taxes problems has hampered the
sector's development. GST should simplify e-commerce taxation. This research
addresses GST's essential aspects, including the taxes it would replace, GST
registration, taxable events, GST valuation, GST payment, GST refund and audit
procedures, and GST compliance. The research indicates that the GST would ease e-
commerce industry by creating a consistent indirect tax system.

Gautam et al.,(2019a)[138] commented that tax avoidance is as ancient as

taxation. This article provides a technique for measuring the amount of tax revenue lost
by the state owing to unethical merchants. They create a regression model based on
legal business dealers' tax filings to predict how much tax suspected business dealers
evade.Benford's analysis is used to classify dealers as honest or guess based on the
various groups of dealers created after running the k-medoids clustering algorithm
across a collection of dealers. Along with estimating the loss of tax income, the findings
 86

of this study assist tax enforcement officials in implementing preventative measures

against tax evasion. The dataset for this study was supplied by the Telangana state
commercial tax department in India.

Wittwer & Anderson (2019)[139] investigated the effect of attitude as a

mediator on the connection between GST comprehension and satisfaction among
Malaysian business groups. This is cross-sectional research in which data are gathered
once. A total of 2,000 questionnaires were circulated across Malaysia's business
community. Only 400 questionnaires were returned, and nine were discarded, resulting
in a 20% response rate. The 391 relevant variables were examined using descriptive
statistics. The three variables were also subjected to reliability and validity tests. The
findings indicate that when the attitude was included as a mediator between the
business communities in Malaysia, the connection between understanding and GST
satisfaction improved.

Parashar et al., (2017)[140] examined buyers and sellers of the FMCG sector's
perception of the transition from a multiple tax regime to a single tax regime. The study
finds that GST does not significantly impact buying behaviour as consumers are not
involved in invoice-based purchases. For sellers, it has created an impact on cots and
compliance. They concluded that awareness should be designed to ensure invoice-based
purchase practices are promoted so that GST becomes meaningful and productive.

2.15 GST AND CONSUMER DECISION MAKING

Chitra, (2019a)[141] conducted survey research to examine the connection

between the GST and consumer purchasing habits. An association between GST and
electronic and sporting goods was identified, leading the researcher to draw the
conclusion that GST had the greatest effect on the pricing of necessities, as opposed to
conveniences and frills.

Fatima Khan (2018)[142] researched on the concepts and features of GST

implemented in India. The researcher concluded that GST will ensure uniformity of tax
burden among sectors of the Indian economy and added that it would make India a
single leagued market for businesses and support the country's development.
 87

Gurusamy & Vasanthakumar (2019)[143] studied awareness about GST among

registered dealers in Coimbatore city. By adopting a simple random technique and with
the help of a structured questionnaire, the researcher found three factors, namely the
new reforms factor, maintenance factor and pay-related factor, that influence registered
dealers' knowledge about GST. The study further indicates that the level of awareness
varies among business entities like a sole proprietorship, partnerships and companies
and concluded that most registered dealers have a moderate analysis of GST in India.

Hemalatha (2018)[144] studied the consumer opinion about GST implemented

in Cuddalore district. The researcher focused on understanding the role of demographic
factors in influencing consumers‘ perception of GST. The researcher found that
demographic variables like age, gender, marital status, income, and family type
significantly influence consumer perceptions about GST and suggested that all goods
and services like petroleum products and alcohol should also be brought under the
preview of GST.

Ishak et al., (2015)[145] comprehensively researched students' perception of

GST in Malaysia. They found that the students are dissatisfied with the GST
implemented in India because of a fall in their spending ability, price hikes and
dissatisfaction with GST rates. They concluded that the government should make sure
that revenue generated through GST is utilised and that consumers enjoy real benefits
of GST.

Jamal et al.,(2018)[146] analysed the awareness of GST and spending behaviour

of Malaysian travellers. Through a quantitative research design and survey method, the
researcher found that most Malaysian travellers are aware of GST and concluded that
the travellers are suffering from the excessive burden of GST, which has modified their
spending behaviour. They suggested that the Malaysian government should take
sufficient measures to reduce the tax burden and increase inland revenues from GST.

Jayalakshmi (2018)[147]surveys of Karnataka residents were used to get

information on their views on GST. According to the findings of the study, Indian
consumers have a favourable view of GST, but they are unsure of how it works.
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Joseph & Kanakavalli (2018)[148] examined consumer knowledge of the India-

implemented GST. They discovered that customers are only somewhat aware of the
GST and are opposed to it using an empirical study methodology and survey
questionnaires. Researchers advise the government to take the lead in educating the
public on the advantages of the GST via students, social media, conferences, and
seminars to reduce this reluctance.

M. A. R. Ahmad et al.,(2016)[149] examined how Malaysia's implementation of

GST is perceived by taxpayers. They discovered that tax payers' knowledge of the GST
is limited and that they are opposed to its implementation in Malaysia from the data
gathered with the use of questionnaires.

Taru Maheshwari & Mani (2019)[150]examined the extent to which Indian

customers are aware of the new GST. In order to do this, they conducted a study of 200
people in Delhi about their views on GST and discovered that enhancing the public
knowledge of GST would help customers better understand the tax.

Murugaiyan et al., (2017)[151]examined the degree to which the Indian

population is aware of the new GST. According to the results of a poll of 100 people,
the GST will be successful in achieving its stated goals, including bringing down prices,
reducing inflation, and eliminating the "cascade effect" of taxes.

N. Kumar (2018)[152]used convenience sample survey technique to examine

how GST is perceived by Indian consumers. There are many aspects that influence
customers' perceptions of the GST, according to the study's findings. As a result, the
government should make an effort to clear up confusion about GST among consumers.

Palil & Ibrahim (2011)[153] investigated the impact of GST on middle-income

earners in Malaysia. After implementing the GST, they found that increased prices and
a decrease in purchasing power were critical issues for consumers. They suggested that
the Malaysian government implement it after convincing and clarifying consumers‘
concerns about India's GST.

Prabha et al., (2018) [154] investigated the consumer behaviour changes due to
GST. The study finds that after GST implementation, there is a considerable change in
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buying behaviour of households and personal care especially witnessing a decrease in

purchase frequency. The author concluded that the GST would contribute to economic
growth and be a boon for consumers as necessary revisions are carried out when
consumers sustainably experience price hikes.

Ramkumar (2018)[155] in a study of consumer perceptions of GST from an

economic standpoint, it was discovered that consumers are satisfied with goods and
services brought under the nil-rate slab and that the lack of an increase in personal
income after the implementation of GST has curtailed their spending ability, thus
regulating their purchases carefully.

Rathi & Sreeraj (2018)[156] in Mannarkad district, consumer perception

research was conducted to examine customer attitudes toward the GST. They
discovered that the customer has a favourable attitude about GST and concluded that
demographic characteristics do not influence consumer impressions of GST in India.

Shaari et al., (2015)[157] studied the student‘s awareness and knowledge about
GST in Malaysia. The researcher concluded that the tariffs on goods and services would
generate more government revenues. With the cooperation and commitment from all
the parties, GST will better contribute to government development.

Sudha & Kumaresan (2018)[158] examined the effect of the GST on electronic
items, particularly from the perspective of the end user. Finally, they determined that if
India is ever to become a "One country and one market," it must include all firms, no
matter how uncontrolled, in the GST system.

Venkateswara Kumar & Kishore Babu (2018a)[159] Studied the engineering

faculty's perception of GST in India. For this purpose, the survey of 200 engineering
faculties in the Guntur region in India. By analysing the respondent‘s opinions, they
concluded that the government should seek the views of intellectuals to streamline the
GST. Efforts should be taken to minimise misunderstandings about GST in India.

Das et al.,(2020b)[160] Stated that introduction of GST was the major problem
in India during 2017. They studied public opinion towards the implementation of GST.
Using sentimental analysis popularity vs polarity model based on 200k tweets from
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June 2017 to December 2017, to predict popular GST words and their occurrence
probability. They found that the popularity vs polarity model is appropriate enough to
predict the expected outcomes.

Uniyal & Uniyal,(2020)[161] Studied public perceptions towards GST. For this
purpose, they used sentimental analysis-based lexicon and machine learning. Nearly
1,63,373 tweets over the period of July 4th to 25th, 2017 were analysed and discovered
that all the models developed were good enough to produce the desired results. They
also found that SVM and Logistic Regression could predict the polarity of new
incoming tweets with an accuracy of 77.6 per cent and 79.31 per cent, respectively.

Deepak Chowdary et al.,(2020)[162] aimed to analyse critical remarks (tweets)

regarding GST using a POS-N-gram tokenisation method to extract word tokens to
categorise emotions or views. The suggested study seeks to increase the accuracy of
sentiment classifications using an optimum amount of reduced words. This research
presents a new method for dimensionality reduction, as is a dropout deep neural
network classifier for sentiment categorisation. These techniques are tested against the
proposed dataset (Corpus-1) as well as two additional benchmark datasets, including
movie reviews (Corpus-2) and SemEval 2016 (Corpus-3). The experimental findings
demonstrate unequivocally that the suggested technique outperforms current
approaches.

Das et al.,(2020a)[163] stated that an experimental approach for sentiment

analysis of GST tweets produced the most common GST phrases and their polarity
ratings. As a result of these recent events, a lot of debate over the new tax structure has
erupted on Twitter and Facebook. For calculating GST-exclusive word counts and
sentiment analysis within a given range of tweets, they present a novel Twitter-based
polarity-popularity framework and word clustering technique, which may be fantastic
indications of terms recurrence likelihood particular to this topic. This study examines
the lexical analysis of tweets from several aspects and future development.

Ojha & Vrat (2019)[164] observed that tax evasion is widespread in the majority
of countries. It hinders the nation's economic development. In this article, they provide
a method for detecting groups of individuals who conduct tax evasion by manipulating
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their sales and (or) purchases to reduce their tax obligation. They conduct clustering
analysis on certain sensitive factors associated with each dealer. They then identified
the suspect dealers by evaluating the number of dealers across the various clusters.
These dealers are then further examined using additional sensitive criteria. This project
was developed and executed for the Telangana State Government in India.

Nirmal Dev et al., (2019)[165] aims to examine SBPs' knowledge and views
about GST. Additionally, how effective the government has been in educating SBPs on
GST. They are particularly interested in SBPs' perceptions of the new tax system (e.g.,
transparency, burden on SBPs) and its administration. The findings indicate that
initially, there was little knowledge of GST among SBPs, but as time passed, awareness
grew. However, not all SBPs viewed the GST system as reasonably straightforward or
easy to comprehend. However, it was noticed that most SBPs have been attempting to
familiarise themselves with the new tax system from its inception, i.e., when the GST
law was enacted. Numerous SBPs also said they rely on the accounting software to
track their GST operations. While the GST was first thought to be straightforward,
certain compliance costs strain SBPs. This study is qualitative and is based on
observation.

Rajeswari et al., (2019)[166] explored the influencing factors that could have an
impact on Malaysian GST-registered people's tax compliance behaviour. The
Malaysian economy relies heavily on the money raised by broad-based indirect taxes on
consumption. The issue of GST compliance, namely registered persons' excessive input
tax claims and inadequate output tax declarations, served as the impetus for this study.
Thus, by integrating economic factors like the GST tax system's structure, the tax rate,
audit, penalty, and compound/fine with psychological and social elements like GST
attitudes and GST knowledge, this study presents a conceptual framework for GST
compliance behaviour.

Uppal et al., (2019)[167] The GST was suggested by the Indian government as
part of a "one tax, one nation" initiative that would replace all cascading taxes with the
GST. The GST is India's most comprehensive tax reform, affecting citizens of all
economic classes. As a result, GST was heavily debated in society. By evaluating social
data linked to GST, they determined popular sentiment toward the programme, which
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may aid the government in making necessary amendments to ensure its successful
implementation. Millions of individuals use microblogging sites like Twitter to express
their opinions on a company, service, or plan. Sentiment Analysis enables the
identification of the emotions behind social media conversations. They provide
sentiment analysis of GST in this article by analysing the textual content of Twitter to
ascertain public opinion on GST. The public's opinion may be critical in ensuring that
this change is implemented correctly. After completing their study, they notice that the
Indian crowd is not enthusiastic about GST, owing to the difficulties in administering
the system and the resulting confusion.

Madan et al.,(2018)[168] stated that Twitter has been more widely used by
internet users as a communication tool. A great data source for sentiment analysis and
opinion mining, it features millions of people who voice their opinions. In our situation,
the GST has been one of the most contentious issues in the media, both domestically
and internationally. They collected data from Twitter and tried to estimate how Indians
see the GST in this piece. How to build a Twitter corpus for sentiment analysis and
opinion mining has been discussed. A lexicon-based technique is used to analyse the
collected corpus. Using this technique, they divide the attitudes expressed in the text
into three major categories: positive, negative, and neutral attitudes.

Narasimha Rao & Kishore Babu (2018)[169] ascertain public perceptions of

GST in Guntur, Andhra Pradesh. As a result, this study aims to determine the
engineering faculty's views on GST. Most engineering professors are unaware of GST
and have reservations about it. Historically, a great insurrection has been predicted to
occur shortly under the indirect tax system, i.e., GST, and as a result, the faculty is
unfamiliar with the ideas. However, as a democratic nation, India should make the GST
obvious to its people. As a result, every person must be informed of the new GST. If
faculty members are told, they can instil awareness in the minds of students who will
soon become young entrepreneurs, contributing to India's bright and dynamic future.

Venkateswara Kumar & Kishore Babu (2018b)[170] Opinions that GST is an

indirect tax have resulted in the reintroduction of many indirect taxes in India. The GST
Act was adopted by the Parliament on March 29th, 2017, and it became operative on
July 1st, 2017.The GST system has been misunderstood, resulting in a skewed view.
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This research seeks information on pharmacists' perceptions of the GST in Guntur,

Andhra Pradesh. Pharmacists are often unaware of GST and have some reservations
about it. The indirect tax system will likely face a significant insurgency in the
following years. As this is the first time, the government must proactively educate
everyone about the GST system. If pharmacists are informed, they may raise consumer
awareness and alter their views, thus transforming India into a lively and dynamic
nation.

Othman et al. (2019)[171] stated that Online social media is a rapidly expanding
sector of our society and is increasingly ingrained in human existence. Most internet
users are interested in posting to and exchanging information through social media.
This study described a method for processing opinion mining on GST data publicly
accessible on social media using recursive neural networks and maximum entropy
techniques. On July 1st, 2017, the Indian government enacted GST, an indirect tax.
Using data from the Facebook and Twitter websites, this technique forecasts the GST
adoption outcomes in India. The recommended method determines the favourable and
unfavourable impacts on distinct types of people and uses opinion polarity to determine
the relative importance of various points of view.

Muthu Lakshmi & Lakshmi Praveena (2019)[172] stated that research was done
to understand better the present mood rather than relying on shorter, more narrowly
focused polls run by media corporations. To get the best accuracy for the dataset, many
classifiers are applied. The author offers a fresh approach to analysing tweet tone and
its effects on diverse industries. The sector trend is also studied using stock market
research, and a connection between the two is discovered. Additionally, the suggested
method's accuracy contrasts with modern classifiers like SVM, naive Bayes, and
random forest. The results show that the suggested strategy outperforms the other two
options. In addition, topic modelling was used to get a comprehensive summary of the
most well-liked GST-related topics. Text rating and LDA algorithms were used to
identify related topics.

Purushottama Rao et al.,(2019)[173] They emphasised that the significance of

enforcing contradictory laws impacts the country's economy. Politicians must forecast
the effect of each regulation before enacting it. Our legislators passed the GST to
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bolster India's economy. Nowadays, the public is used to expressing their views through
social media. There are many Tweets about the GST. They developed a method called
Opinion Extraction Using Favorites Count to evaluate public opinion. This algorithm is
applied to Twitter messages to elicit the public's view on the GST. This algorithm's
performance is compared to a generic sentiment analysis technique.

Mathews et al.,(2019)[174] commented that India has switched from VAT to

GST, intending to boost tax collection while lowering commodity prices. Authorities
expect early implementation challenges, including price increases, but aim to overcome
them quickly to lead the nation to prosperity. In this context, assessing the public's trust
in the GST's implementation may be worthwhile by analysing wholesalers, retailers,
and the general public's perceptions (consumers). The study's findings illustrate the
public's views on the GST's implementation.

Tomar et al.,(2019)[175] referred to as a combined tax on the supply of goods

and services. On July 1st, 2017, the statutory tax rates for the GST replaced all
previously applicable indirect taxes. This study intends to measure the effect of the GST
on consumer behaviour and investigate the relationship between income and spending
patterns. Using Factor Analysis and ANOVA, the researcher investigated the
hypotheses. The results showed that there is a significant correlation between income
and electronic and sporting goods, but not with wheat, rice, clothes, hair oil, soap,
toothpaste, cosmetics, dried fruits, tobacco, fast food, internet access, newspapers and
magazines, fruits and vegetables, entertainment, auto maintenance, or footwear. The
study also found that the GST had a greater impact on necessities than on luxury and
extraneous products.

Tekwani & Raghuvanshi (2019)[176] The development of the internet and web
technologies and the widespread availability of electronic devices has made the web
readily accessible to a huge user base. The internet is a vast repository of information
and a medium for data sharing. Social networking platforms have paved the way for
individuals to express their ideas and opinions. The past decade has witnessed an
exponential increase in social media users. This has resulted in more than freely
accessible digital data with enormous potential. It has paved the way for new directions
in data analytics research, namely Sentiment Analysis. Sentiment Analysis is a field of
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study that combines machine learning and natural language processing. It extracts,
identifies, and characterises the user's perspective and opinion on a specific subject.
Positive or negative sentiments are acceptable. Due to its well-documented and open
APIs, Twitter is the most popular platform for social media research. This article
assesses user attitudes about the GST Bill.

Shanti & Murty (2019a)[177] investigated how the GST would affect customer
behaviour in terms of technology. Through primary data analysis, the researcher
concluded that there is a strong association between the purchasing power of consumers
and the GST implemented in India.