IDEAS home Printed from https://ideas.repec.org/a/pal/jorapm/v18y2019i5d10.1057_s41272-019-00202-9.html
   My bibliography  Save this article

Analysis of barriers in implementation of Goods and Service Tax (GST) in India using interpretive structural modelling (ISM) approach

Author

Listed:
  • Manoranjan Kumar

    (Indian Institute of Technology Bhubaneswar)

  • Akhilesh Barve

    (Maulana Azad National Institute of Technology Bhopal)

  • Devendra K. Yadav

    (Indian Institute of Technology Bhubaneswar)

Abstract

Goods and Service Tax (GST), a destination-based unified taxation system, was implemented on 1st July 2017 in India replacing 17 different indirect taxes with the vision to create a seamless common market. A country like India, with the population of over 1.3 billion and heterogeneous distribution of wealth having a federal structure, opted for six different tax slab and dual-GST structure. In some countries, GST has been successful but in others, it has failed. We have attempted to investigate the barriers to the smooth implementation of GST. In this paper, we have identified 12 barriers to GST implementation. Using interpretive structural modelling (ISM), this study finds the driving and dependence nature of different barriers to develop a structural model. The results of analysis found that lack of skilled manpower, lack of clarity of GST provisions, political unwillingness, and lack of policy for proper division of tax are the major barriers in the implementation of GST. In addition to the above analysis, MICMAC analysis is utilized to cluster the barriers in four categories as per their relative driving and dependence powers.

Suggested Citation

  • Manoranjan Kumar & Akhilesh Barve & Devendra K. Yadav, 2019. "Analysis of barriers in implementation of Goods and Service Tax (GST) in India using interpretive structural modelling (ISM) approach," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 18(5), pages 355-366, October.
    • Handle: RePEc:pal:jorapm:v:18:y:2019:i:5:d:10.1057_s41272-019-00202-9
    DOI: 10.1057/s41272-019-00202-9
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41272-019-00202-9
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1057/s41272-019-00202-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Rajesh Chadha, 2009. "Moving to Goods and Services Tax in India : Impact on India’s Growth and International Trade," Trade Working Papers 23071, East Asian Bureau of Economic Research.
    2. Raut, Rakesh D. & Narkhede, Balkrishna & Gardas, Bhaskar B., 2017. "To identify the critical success factors of sustainable supply chain management practices in the context of oil and gas industries: ISM approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 68(P1), pages 33-47.
    3. Nor Hafizah Abdul Mansor & Azleen Ilias, 2013. "Goods and Services Tax (GST): A New Tax Reform in Malaysia," International Journal of Economics, Business and Management Studies, Online Science Publishing, vol. 2(1), pages 12-19.
    4. Rajesh Chadha, 2009. "Moving to Goods and Services Tax in India: Impact on India’s Growth and International Trade," NCAER Working Papers 103, National Council of Applied Economic Research.
    5. Ahmad, Ehtisham & Poddar, Satya, 2009. "GST reforms and intergovernmental considerations in India," LSE Research Online Documents on Economics 38346, London School of Economics and Political Science, LSE Library.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Siti Norwahida Shukeri & Faisal D Alfordy, 2021. "Valued Added Tax (VAT) Impact on Economic and Societal Well-Beings (Pre-and Post COVID19): A Perception Study From Saudi Arabia," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 12(1), pages 92-100, January.
    2. Som Sekhar Bhattacharyya & Praveen Nemana, 2024. "Effect of Demonetization on Advertising, Research & Development and Human Resource Intensities and its Impact on Firm’s Performance," Vision, , vol. 28(3), pages 361-373, June.
    3. Pankaj Dikshit & M. P. Gupta & Arpan Kumar Kar & B. Chandra, 2022. "Taxation transformation of businesses enabled by information systems: an empirical study of Goods and Services Tax implementation in India," SN Business & Economics, Springer, vol. 2(9), pages 1-26, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. R, Revathi & L. M., Madhushree & Aithal, Sreeramana, 2019. "Review on Global Implications of Goods and Service Tax and its Indian Scenario," MPRA Paper 95152, University Library of Munich, Germany.
    2. Saeed Solaymani, 2020. "Assessing the economic and social impacts of fiscal policies," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 47(3), pages 671-694, March.
    3. Suresh Narayanan, 2014. "The Impact Of The Goods And Services Tax (Gst) In Malaysia: Lessons From Experiences Elsewhere (A Note)," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 59(02), pages 1-15.
    4. Sijbren Cnossen, 2013. "Preparing the way for a modern GST in India," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 20(4), pages 715-723, August.
    5. Vivekananda Mukherjee, 2013. "Determinants of Stamp Duty Revenue in Indian States," South Asian Journal of Macroeconomics and Public Finance, , vol. 2(1), pages 33-58, June.
    6. Fu, Shuke & Ge, Yingchen & Hao, Yu & Peng, Jiachao & Tian, Jiali, 2024. "Energy supply chain efficiency in the digital era: Evidence from China's listed companies," Energy Economics, Elsevier, vol. 134(C).
    7. Prabhsimran Singh & Yogesh K. Dwivedi & Karanjeet Singh Kahlon & Ravinder Singh Sawhney & Ali Abdallah Alalwan & Nripendra P. Rana, 0. "Smart Monitoring and Controlling of Government Policies Using Social Media and Cloud Computing," Information Systems Frontiers, Springer, vol. 0, pages 1-23.
    8. Chand, Pushpendu & Thakkar, Jitesh J. & Ghosh, Kunal Kanti, 2020. "Analysis of supply chain sustainability with supply chain complexity, inter-relationship study using delphi and interpretive structural modeling for Indian mining and earthmoving machinery industry," Resources Policy, Elsevier, vol. 68(C).
    9. Razman Hafifi Redzuan & Mohamed Dahlan Ibrahim & Mohd Rosli Mohamad & Muhammad Zaly Shah Muhammad Hussein, 2019. "Application of Plated Rubber System (PRESS) for Rubber Identification," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(2), pages 62-65, July.
    10. Simona Cosma & Rossella Leopizzi & Simone Pizzi & Mario Turco, 2021. "The stakeholder engagement in the European banks: Regulation versus governance. What changes after the NF directive?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(3), pages 1091-1103, May.
    11. Abbas Mardani & Dalia Streimikiene & Edmundas Kazimieras Zavadskas & Fausto Cavallaro & Mehrbakhsh Nilashi & Ahmad Jusoh & Habib Zare, 2017. "Application of Structural Equation Modeling (SEM) to Solve Environmental Sustainability Problems: A Comprehensive Review and Meta-Analysis," Sustainability, MDPI, vol. 9(10), pages 1-65, October.
    12. Aparna Venugopal & Dhirendra Shukla, 2019. "Identifying consumers' engagement with renewable energy," Business Strategy and the Environment, Wiley Blackwell, vol. 28(1), pages 53-63, January.
    13. Isabelle Joumard & Urban Sila & Hermes Morgavi, 2015. "Challenges and Opportunities of India's Manufacturing Sector," OECD Economics Department Working Papers 1183, OECD Publishing.
    14. Naim Ahmad & Ayman Qahmash, 2021. "SmartISM: Implementation and Assessment of Interpretive Structural Modeling," Sustainability, MDPI, vol. 13(16), pages 1-27, August.
    15. Mukesh Kumar & Rakesh D. Raut & Mahak Sharma & Vikas Kumar Choubey & Sanjoy Kumar Paul, 2022. "Enablers for resilience and pandemic preparedness in food supply chain," Operations Management Research, Springer, vol. 15(3), pages 1198-1223, December.
    16. Noor Shakir Mahmood & Ahmed Ali Ajmi & Shamsul Bin Sarip & Hazilah Mad Kaidi & Khairur Rijal Jamaludin & Hayati Habibah Abdul Talib, 2022. "Modeling the Sustainable Integration of Quality and Energy Management in Power Plants," Sustainability, MDPI, vol. 14(4), pages 1-19, February.
    17. Samiha Mjahed Hammami & Sahar Chtourou & Heyam Al Moosa, 2018. "A holistic approach to understanding the acceptance of a community‐based renewable energy project: A pathway to sustainability for Tunisia's rural region," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1535-1545, December.
    18. Dwivedi, Ashish & Moktadir, Md. Abdul & Chiappetta Jabbour, Charbel José & de Carvalho, Daniel Estima, 2022. "Integrating the circular economy and industry 4.0 for sustainable development: Implications for responsible footwear production in a big data-driven world," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    19. Karen V. Czachorowski, 2021. "Cleaning Up Our Act: Systems Engineering to Promote Business Model Innovation for the Offshore Exploration and Production Supply Chain Operations," Sustainability, MDPI, vol. 13(4), pages 1-15, February.
    20. Md. Raquibuzzaman Khan & Nazia Tabassum & Niaz Ahmed Khan & Mohammad Jahangir Alam, 2022. "Procurement challenges in public-sector agricultural development projects in Bangladesh," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-13, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jorapm:v:18:y:2019:i:5:d:10.1057_s41272-019-00202-9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.