Measuring Implications of Statutory Compliance Like GST on Sustainability - A Case Study on Automobile Industry

Abstract

The pioneering step of implementation of GST in India, has brought initial producer’s and service provider’s and retailers in one tax regime reducing the burden of all other taxes, including the burden of CENVAT and service tax. GST is a Major step designed to streamline the taxation of goods and services. The changes in the tax structure led to the changes in the prices of goods. These changes were significant in few cases and they impacted the consumer behaviour largely. The objective of this paper is to study the consumer behaviour by analysing the impact of GST/Tax policies on automobile industry. The focus of the study is LMV (cars). The purchase pattern of cars is studied before and after the implementation of GST. The hypothesis-based research method is used and tested. The secondary data for the analysis of the production and sales is obtained from Web-based information, literature so far published in the journals is used to analyse the gap. The analysis is carried out using correlations methods such as t-test and paired t-test. This research should add significant value in understanding the implications of GST on purchase behaviour, the paper further tests possibilities of reduction of carbon footprints as an implication of policy change. The reduced number of vehicles will reduce the carbon footprint whereas the increased number of vehicles will increase the carbon footprint. Shift to electric vehicles and achieving green mobility is at the top of the agenda for developed nations. Countries like USA and China are incentivising green mobility through policy changes. India also supports green mobility by no tax and 5% GST. However, the green mobility policies should be enacted in sync with state and centre government. The results should help to understand LMV (Car) sector sales before and after GST and its implications.

Keywords: Goods and Services Tax, Case Study, Carbon Footprint, Policies, Light Motor Vehicle

View PDF