The Impact Analysis of Major Financial Ratios of Indian Textile Firms After Implementation of Gst

Abstract

This study analyses the major financial ratios of top 25 selected textile companies in pre and post-GST periods. The pre-GST period spans from FYs 2011-12 to 2016-17, while the post- GST period covers FYs 2017-18 to 2022-23. Both periods have been compared with major financial ratios including liquidity, profitability, efficiency and investor’s ratios. The firms for sample study have been selected from BSE index based on market capitalization. The data has been collected from the annual reports of the selected firms. The study concluded that the implementations of GST have a positive impact on the liquidity and profitability of the select firms. It has resulted in reduced tax leakage, enhanced supply chain, the benefit of input tax credit, improved cost efficiency and increased market opportunities. However, the firms also faced challenges related to pricing policies, tax rates, compliance, logistics and distribution, which adversely affected the efficiency of the firm.