STUDY THE IMPACT OF GST (GOODS & SERVICE TAX) IN MANUFACTURING UNITS OF ALIGARH DISTRICT OF UTTAR PRADESH

“One Nation One Tax” GST was implemented on July 1st, 2017, following the One Hundred and First Amendments of the Indian Constitution by the Government of India. Goods and Services Tax is increasing competitiveness and performance in India’s manufacturing sector. This study investigates the effects of the Goods and Services Tax (GST) implementation on manufacturing units in Aligarh, Uttar Pradesh, focusing on its impact on operational and performance aspects. The primary objective was to assess how GST influences manufacturing operations, tax compliance, and overall business profitability within this region. Data was collected through a structured questionnaire from 70 owners of manufacturing industrial units, chosen randomly. The analysis was conducted using simple percentage evaluations and bar diagrams to interpret the responses. The findings reveal a predominantly positive sentiment toward GST among the respondents. A significant majority acknowledged that GST has simplified tax compliance processes, reduced complexities associated with tax filings, and enhanced operational efficiencies. The study also highlights a strong consensus on the reduction of tax evasion and the overall beneficial impact of GST on the local manufacturing landscape. However, a minority of the participants reported challenges, including increased complexity in certain aspects of tax compliance, higher costs related to GST implementation, and adverse effects on cash flow. This research underlines the transformative potential of GST for improving business operations and supports continued efforts to refine this taxation framework to bolster the manufacturing industry's growth and development in the region.
Keywords: GST, Manufacturing, Compliance