Title: Before-after effect of GST on the sales and profitability - a study of top BSE companies in India

Authors: Pawan Kumar; Jasdeep Singh Walia; Gagandeep Singh

Addresses: Mittal School of Business, Lovely Professional University, Phagwara, Punjab, 144411, India ' Mittal School of Business, Lovely Professional University, Phagwara, Punjab, 144411, India ' Mittal School of Business, Lovely Professional University, Phagwara, Punjab, 144411, India

Abstract: With the rollout of goods and service tax (GST) in India w.e.f. 1 July 2017, the hope of India's most significant fiscal reform 'one nation, one market, one tax' has regained the momentum. The purpose of this paper is to check the immediate impact of this historic tax reform on the sales and profitability of top 80 BSE listed companies with highest market capitalisation. Using secondary data as a base, the Q1 (ended 30 June) and Q2 (ended 30 September) financial results, i.e., before GST and after GST have been examined using paired sample t-test and comparative analysis. The results of the study show that GST has not significantly affected the revenue but has significantly affected the after-tax profits of these corporations.

Keywords: goods and services tax; GST; Bombay Stock Exchange; BSE; market capitalisation; sales; profitability; India.

DOI: 10.1504/IJBG.2022.128172

International Journal of Business and Globalisation, 2022 Vol.32 No.4, pp.337 - 362

Received: 12 Jun 2018
Accepted: 27 Dec 2018
Published online: 10 Jan 2023 *

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