FROM TAXATION TO TRANSFORMATION: DUAL LEVY SYSTEMS AND THEIR INFLUENCE ON DIGITAL VISUAL CULTURE AND CREATIVE INDUSTRIES

Kareena  Joshi; Sanjeev Agarwal

doi:10.29121/shodhkosh.v7.i8s.2026.7645

Authors

Kareena Joshi Research Scholar, School of Business Management, IFTM University, Moradabad, India
Dr. Sanjeev Agarwal Professor, School of Business Management, IFTM University Moradabad, India

DOI:

https://doi.org/10.29121/shodhkosh.v7.i8s.2026.7645

Keywords:

Goods and Services Tax (GST), Manufacturing Sector, Supply Chain Efficiency, Tax Compliance, Industrial Growth, Input Tax Credit, Cost Structure Analysis, India's Tax Reform

Abstract [English]

One of the most significant indirect tax reforms in the country in the history since the independence of the country is the Goods and Services Tax (GST) that has been introduced in India on July 1, 2017. This is a detailed study which explores the transformative effect of GST to the manufacturing sector of India which contributes about 16-18% of the GDP of the country and employs more than 50 million workers. The mixed-method approach that this paper uses to quantify the multidimensional effect of GST implementation on manufacturing operations, cost structure and competitiveness of industries is quantitative. The data of 2015-2024, including pre-GST, transition, and post-GST, is covered in a variety of manufacturing sub-sectors, such as automotive, pharmaceuticals, textiles, chemicals and consumer goods. Among some of the key findings are that GST has brought about a reduction in effective tax burden by 26.5, optimization of the mechanisms of input tax credit by 240.2 and improvement of the supply chain efficiency through standardized compliance frameworks. The manufacturing industry has experienced 34.8% growth in formalization of tax compliance, 42.6% increase in the inter-state trade transactions and massive decline in the cascading effects of taxes. However, some challenges still exist in the complexity of compliance, customization to small and medium enterprise (SME), and getting used to the global value chain. The paper also provides comparative analysis with sectors of digital economy and service to put in perspective the effects that are specific to manufacturing. Results have demonstrated that the manufacturing sector is one of the driving forces to the economic growth and industrial development of India through the implementation of harmonized GST and further refinements in compliance infrastructure and the support strategies of the SMEs. The research contributes to a policy debate by offering evidence-based recommendations on how to streamline the process of GST administration in the industry and sheds light on whether a tax system is effective in bringing industrial transformation.

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