A STUDY ON IMPACT OF GST ON PERFORMANCE OF SELECTED TEXTILE COMPANIES IN INDIA
DOI:
https://doi.org/10.55829/p6adta07Keywords:
Goods and Service Tax, Textile Companies, Profitability ratio, Growth ScenarioAbstract
The implementation of the Goods and Services Tax (GST) in India marked a significant shift in the nation's tax framework, aiming to streamline the taxation process by consolidating various indirect taxes into a unified system. This study investigates the impact of GST on the performance of selected textile companies in India, focusing on Vardhman Limited, Orbit Expo Limited, and Raymond Limited over the financial years 2019-20 to 2023-24. The research objectives include analyzing the growth patterns of these companies, assessing their profitability post-GST implementation, and determining any significant differences in performance before and after GST. A comprehensive analysis of financial metrics such as closing prices, Earnings Per Share (EPS), Price-to-Earnings (P/E) ratios, and total returns was conducted. The findings reveal that while there were fluctuations in these metrics over the analyzed period, the paired samples t-test indicated no statistically significant difference in closing prices before and after GST implementation. This suggests that, at an aggregate level, GST did not have a uniform impact on the performance of these textile companies. However, the considerable variability observed across individual companies highlights the need for a more nuanced understanding of GST's effects, considering factors such as company size, market positioning, and adaptability to the new tax regime. These insights contribute to the broader discourse on GST's role in shaping the textile industry's trajectory in India.
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