GST And Its Effect on MNC Manufacturing Companies An Empirical Study

Abstract

The implementation of the Goods and Services Tax (GST) signifies one of the most important indirect tax changes in India, designed to establish a cohesive national market and enhance business efficiency. This research investigates the impact of GST on multinational manufacturing firms (MNCs) in India, specifically highlighting the GST rate framework, input tax credit (ITC) system, compliance and filing processes, decrease in cascading taxes, and clarity in tax management. The study utilizes a quantitative method, employing primary data gathered via a structured survey from manufacturing companies and experts involved in MNC activities. Descriptive statistics and regression analysis are utilized through SPSS to assess the effects of GST on sector performance and overall business effectiveness.
The results indicate a notable connection between GST implementation and the performance of multinational manufacturing firms. GST has enhanced cost efficiency by minimizing cascading taxes, streamlining supply chain integration, and increasing transparency in tax adherence. The findings also reveal moderate difficulties linked to the complexity of compliance and the costs of adjustment during the transitional period. In conclusion, the research finds that GST has significantly influenced the operational and competitive landscape of multinational manufacturing companies in India. The study provides important perspectives for policymakers, business executives, and international investors in enhancing GST enforcement and boosting manufacturing competitiveness