Implication of Goods and Services Tax (GST) Implementation in India on Foreign Trade
https://doi.org/10.26794/2587-5671-2022-26-3-241-251
Abstract
The aim of this research is to assess the impact of GST on India’s foreign trade. The GST Bill is implemented to simplify India’s complex tax system, allow commodities to move effortlessly across state borders, reduce tax evasion, enhance compliance, raise revenues, encourage growth, boost exports, and attract investors by making it easier to conduct business in India. The author uses the following methods of scientific research: Augmented Dickey-Fuller (ADF) for unit root tests, the Johansen-Juselius (JJ) for co-integration analysis and the Vector Error Correction (VECM) Model for short run and long run impact of GST on imports and exports from July 2017 to June 2021. The findings concluded that GST increases the exports of goods and services in both the long and short run. The VECM model’s test statistics reveal that imports rose after the imposition of GST. Because of the emergence of a uniform national market and tax system, GST has simplified commercial operations in India. Future studies on the effects of the GST introduction can examine the impact of GST on foreign trade by state or commodities.
About the Authors
N. Singhal
IIMT University
India
India
Nikita Singhal — Assistant Professor, School of Commerce and Management.
Meerut
S. Goyal
Amity University
India
India
Shikha Goyal — Research Scholar.
Noida
S. Kumari
Vidya Knowledge Park
India
India
Dr Sapna Kumari — Assistant Professor.
Meerut
S. Nagar
GNIOT Groups of Institutions
India
India
Shweta Nagar — Assistant Professor.
Noida
A. Tyagi
Amity University
India
India
Ayushi Tyagi — Research Scholar.
Noida
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Review
For citations:
Singhal N., Goyal S., Kumari S., Nagar S., Tyagi A. Implication of Goods and Services Tax (GST) Implementation in India on Foreign Trade. Finance: Theory and Practice. 2022;26(3):241-251. https://doi.org/10.26794/2587-5671-2022-26-3-241-251
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