OPTIMIZING OPERATIONS IN A GST ERA: CHALLENGES AND OPPORTUNITIES FOR PHARMACEUTICAL MANUFACTURERS

Abstract

With the introduction of the Goods and Services Tax (GST) on July 1, 2017, India's tax structure underwent a dramatic transformation that resulted in the combination of multiple indirect taxes into a single, comprehensive tax. The pharmaceutical sector in India, which is the third largest in the world by volume and the fifteenth by value, is the subject of this study's operational analysis about the effects of GST. Analysing the difficulties and chances that GST presents for streamlining operations in the pharmaceutical manufacturing sector is the main goal. The study looks into how the GST affects working capital management, supply chain logistics, tax compliance, and overall operational efficiency using a qualitative multiple-case study technique. Important conclusions show that while the Goods and Services Tax (GST) has simplified the tax system and lessened the total tax burden on pharmaceutical sproducts, it has also brought up new difficulties, including higher compliance costs and supply chain disruptions. The study finds moderating factors that affect the relationship between the adoption of the Goods and Services Tax (GST) and operational outcomes. These factors include company size, government support, and industry collaboration. The long-term a more straightforward tax structure. Policymakers and industry stakeholders can benefit greatly from this study's insightful recommendations on how to improve pharmaceutical manufacturers' operational efficiency in the GST era.