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Research Article Open access CC BY 4.0

Assessing the Impact of GST on Profitability: Insights from Education, Hospitality, and Logistics Sectors

Ranjeet Kumar Ambast, Amit Gupta, Shailendra Singh Bhadouria

Asian Journal of Economics, Business and Accounting · pp. 41–52 · Published 15 Mar 2024

10.9734/ajeba/2024/v24i51291

Abstract

Goods and Services Tax (GST) has made a revolutionary impact on all sectors of the economy, impacting their overall financial performance. The study has focused on the role of GST on the financial performance of service sector entities namely, education, hospitality, and logistics, with special emphasis on profitability. Employing analysis of secondary data and in-depth interpretation, the study attempts to understand the role of GST deployment on company profits, examining both pre-GST and post-GST scenarios. By scrutinizing trends and patterns in profitability data and comparing performance before and after GST enactment, this study focuses on the sector-specific effects of the tax reform on profitability. The study adopts a quantitative approach to assess the role of the GST on the financial performance of service sector companies, with a specific focus on profitability. Data was checked for normality. Subsequently, Correlation & Paired t-tests were done using R-Studio. The analysis of the education, hospitality, and logistic sectors post-GST implementation reveals diverse impacts on mean profit changes. The study will help develop customized policies for each sector that promote sustainable development amidst changing tax legislation.

Goods and services tax (GST) service sector profitability education hospitality logistics

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