Review of GST Implementation on the Retail Industry and its Business Impact

Abstract

The implementation of Goods and Services Tax (GST) has had a profound impact on the retail industry, reshaping the way businesses operate and interact with the taxation system. This tax reform, introduced in many countries, aims to simplify the complex web of indirect taxes and create a unified tax structure.In the retail sector, GST has streamlined taxation processes, eliminating the cascading effect of multiple taxes and reducing compliance burdens. This has led to increased transparency and efficiency in the supply chain, as businesses can now claim input tax credits for taxes paid on their inputs. Consequently, it has enabled retailers to offer competitive prices to consumers.the transition to GST was not without challenges. Many retailers initially faced difficulties in adapting to the new tax regime, including updating their accounting systems and ensuring compliance. Smaller businesses, in particular, encountered some hurdles in the early stages of implementation.