Evaluating the Impact and Service Compliance of Goods and Services Tax (GST) on Organized Textile Retailers: Empirical Evidence from Erode District

Volume 11, Issue 3, 2026

International Journal of Commerce and Management Studies, ISSN 2456-3684

Paper Title

Author Name and Affiliation

Dr. P. Abirami

Assistant Professor & Head, Department of Commerce (IT), Sri Vasavi College (SF Wing), Erode – 638316, Tamilnadu, India.

Email address: oveyaabirami@gmail.com

Abstract

The introduction of the Goods and Services Tax (GST) stands as one of the most significant fiscal reforms in modern India, fundamentally altering the operational dynamics of supply chains. This paper examines the empirical impact and service compliance of GST on organized textile retailers within the Erode district of Tamil Nadu, a prominent hub for powerloom, handloom, and readymade garments. Utilizing a descriptive and analytical research framework, primary data was gathered from a sampled population of 481 organized textile retailers using structured questionnaires. The empirical findings reveal a dual perception: while an overwhelming majority (76.7%) of retailers acknowledge that GST is a transparent tax, a significant portion (45.5%) view the prevailing tax brackets as excessively high for the textile sector. Furthermore, a Henry Garrett Ranking analysis indicates that the “cost of compliance” and “cumbersome procedures and documentation” serve as the primary operational bottlenecks for businesses. The study concludes that while software integration and e-portal transitions are highly prevalent (70.1%), targeted state interventions and rationalized tax structures are crucial to sustaining retail growth without imposing a working capital burden.

Keywords

GST Compliance, Organized Retailing, Textile Industry, Erode District, Cost of Compliance, E-portal

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DOI

DOI: https://doi.org/10.67061/ijcams.2026.vol.11.issue.03.8021

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