Repercussion of Goods and Services Tax System: Empirical Evidence from Small and Medium Retailers Kavitha R.1, Sree T. Brinda2 1Corresponding author; Department of Commerce, Periyar University, Salem, Tamil Nadu, India, (E-mail: kavithayohanmugil@gmail.com) 2Department of Commerce, Periyar University, Salem, Tamil Nadu, India, (E-mail: brindasree3@gmail.com) Online Published on 21 December, 2023. Abstract With a share of GDP between 14 and 15%, the retail industry in India is a major pillar of the economy. India is projected to become one of the fourth-biggest retail marketplaces in the world by 2032, with a retail market of over US$2 trillion. Taxes are mandatory charges imposed by the Indian government to cover a public cost and help the nation’s economy grow. To prevent cascading effects and tax fraud, the current tax structure was replaced with the GST, which went into effect on July 1, 2017. A number of other systemic adjustments were also made. Therefore, using a random sample approach, research focuses on the effects of the goods and services tax on 82 retailers in Salem. It concludes that by banning illicit transactions and removing the cascading effect of taxes, the GST decreases material costs while simultaneously promoting the expansion of the retail sector. Top Keywords Goods and Services Tax, Cascade effect, Tax evasion, Retail market. Top |