Impact Of Goods and Service Tax on the Financial Performance: An Empirical Study of Indian Textile Sector

Abstract

Goods and Services tax is one of the important taxation reforms in India introduced. GST helps unified indirect taxation system in India.  GST implemented in India 1 July, 2017. GST replaced multiple indirect taxes such as value-added tax (VAT), service tax, excise duty, and central sales tax, thereby simplifying the tax structure. The primary objective of GST is to remove cascading effects of taxation, improve transparency, and promote ease of doing business in the country. The study analyzed the impact of GST (Goods & Services Tax) on the profitability of Indian Textile sector. The data has been collected from prowess database. The data has been collected from the period of ranging 2017-2018 to 2025-2026. In this study is taken three variables, GST is independent variable, Size is control variable and Profitability is dependent variable. The study found that the GST is negatively Strongly associated with the profitability. Whereas, Size is used as control variable. Size is not associated with the profitability.