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The purpose of this paper is to present the perception of the textile industry stakeholders (manufacturers, wholesalers, retailers, consumers and tax professionals) on India’s new goods and services tax (GST) system and find whether the introduction of GST has made doing business easier or not.

The researchers used interviews and surveys to capture the perceptions of the textile industry stakeholders at Surat, a major textile hub in India. To econometrically verify the perceptions, the researchers used a logit regression model.

The researchers found that the provision of monthly tax filing has increased textile businesses’ dependency on tax professionals, which increased business costs. Also, the GST system has made tax compliance easier and is user-friendly. However, tax refund-related issues are a significant factor that negatively impacts the ease of doing business post-GST.

The findings of the research shall be helpful for the GST Council of India and policymakers to understand the problems faced by the textile businesses and cater to their problems.

To the best of the authors’ knowledge, this study is original as none of the available studies captures the perception of all the textile industry stakeholders, namely, manufacturers, wholesalers, retailers, consumers and tax professionals, on the GST system applying econometric techniques to validate the perceptions.

The purpose of the current study is to examine the implications of the implementation of Goods and Service Tax (GST) on the revenue efficiency of the sub-national governments in India. Furthermore, the study aims to compare the revenue efficiency of the Indian states for the pre-GST and post-GST periods in India.

The study has used the annual revenue of value-added tax (VAT)/GST of the Indian states for the period ranging from 2012–2013 to 2020–2021 for the pre- and post-GST periods. The empirical results are based on the panel regression model for examining the implications of GST adoption on the Indian states.

The analysis shows that the implementation of GST in India has negatively impacted the revenue efficiency of the Indian states. Moreover, the results affirm that the contribution of the service sector to the state's Net State Domestic Product (NSDP), credit-deposit ratio (CDR) and outstanding net bank credit (ONBC) ratio of schedule commercial banks (SCBs) positively and states' dependency on central transfers (DCT) negatively impact the tax revenue efforts of the state governments. Furthermore, the GST adoption has a greater impact on the revenue efficiency of the minor states in comparison to major states which may widen the inter-state disparity gap as GST revenue constitutes a major share in the Own Tax Revenue (OTR) of the Indian states in aggregate.

The current study will act as a guide for government, policymakers and for the sitting of the fifteenth finance commission in India for future policy formulation on GST and compensation to the Indian states. Similarly, this study can be used as a base for conducting future studies on the implications of GST at the national, sub-national, and international levels.

Previous studies on the implications of GST are theoretical and conceptual. There is hardly any study at the national or sub-national level that has focused on the implications of GST on the revenue efficiency of the Indian states.

Upon completion of the case study, students should be able to understand how changes in a macro environment affect the competitive landscape in an emerging market; acquire a granular understanding about the logistics industry in an emerging market and the various business models developed to service customer needs; determine the attractiveness and challenges of doing business in a fragmented but sunrise industry in an emerging market; and identify the drivers for growth and profitability in the logistics business.

Manisha Sharaf (she/her) and her co-founders conceived the idea of Truck Hall in 2011 to ride with the tide created by booming public investments in the infrastructure and transportation sector. Truck Hall aimed to improve the efficiency of the logistics industry in India by extensively using technology. However, the market research showed that technology-driven services in logistics faced many challenges owing to low internet penetration in the country, weak network connectivity during transportation and the low literacy rates of the truck drivers who were central to this industry. Between 2015 and 2018, Truck Hall experimented with several business models including load board, brokerage and integrated transporter with the sole purpose of achieving profitable growth in a highly fragmented industry with razor-thin margins. This case documented the dilemma faced by a startup in a high-growth but largely unorganized and unregulated industry in a developing economy. Should Truck Hall continue with the current business model of being a niche player or should it vertically integrate and control major segments of the value chain? Should it compromise on growth to become profitable or first scale up?

This case study can be used at the undergraduate, graduate and executive levels.

Teaching notes are available for educators only.

CSS 11: Strategy.

The “metaverse” is the new buzzword. With the phenomenal growth of the metaverse comes accounting, taxation and jurisdictional challenges, which business and governments have yet to fully address. This paper aims to highlight and rationalise the lack of regulatory framework and multiplicity of jurisdictions on metaverse transactions. This paper addresses some of the complications with respect to accounting and taxation in virtual environments.

This study relies on secondary data and emerging literature to understand the multiplicity of jurisdiction and complexity of the accounting transactions. The concept of the metaverse is rapidly evolving, and this study uses extant literature to provide the foundation for understanding the key challenges relating to accounting and taxation.

Concepts of revenue recognition and deferment are challenged by the transactions in the metaverse. There are novel applications, underpinned by emerging technologies and blockchain supporting new crypto assets, such as non-fungible tokens and other decentralised finance (DeFi) tools; however, the caveats of anonymity and jurisdictional issues persist. The paper suggests that the industry must adapt to the unique reporting requirements of these assets and develop new standards for evaluating their value for financial reporting purposes. The paper emphasises the need for a case-based approach in the absence of standardised regulations for the accounting industry in the metaverse.

This paper adds original contributions to extant literature of the metaverse and advances ongoing debates into the accounting and taxation issues pertinent to the metaverse and DeFi.

The supply chain (SC) of the fast-moving consumer goods (FMCG) sector in India witnessed a significant change soon after introducing the Goods and Services Tax (GST). With the initiation of this tax, companies started moving from individual state-wise warehouses to consolidation warehouses model to save costs. This paper proposes a model that frames a mathematical formulation to optimize the distribution network in the downstream SC by considering the complexities of multi-product lines, multi-transport modes and consolidated warehouses.

The model is designed as mixed-integer linear programming (MILP), and an algorithm is developed that works on the feedback loop mechanism. It optimizes the transportation and warehouses rental costs simultaneously with impact analysis.

Total cost is primarily influenced by the critical factor transportation price rather than the warehouse rent. The choice of warehouses at prime locations was a trade-off between a lower distribution cost and higher rent tariffs.

The study enables FMCG firms to plan their downstream SC efficiently and to be in line with the recent trend of consolidation of warehouses. The study will help SC managers solve complexities such as multi-product categories, truck selection and consolidation warehouse selection problems and find the optimum value for each.

The issues addressed in the proposed work are transporting products with different sizes and weights, selecting consolidated warehouses, selecting suitable vehicles for transportation and optimizing distance in the distribution network by considering consolidated warehouses.

This paper aims to use rhetorical theory to understand how actors mobilise persuasive communication to justify the arguments for and against transfer pricing and tax management schemes in an international context. The strategic adoption of transfer pricing by transnational corporations is controversial since it affects wealth transfers.

This paper adopts a micro-rhetorical analysis of submissions to a recent government Inquiry in Australia based on Aristotle's appeals of logos, ethos and pathos. The arguments used by Chevron Australia, and its protagonist civil society organisation, the Tax Justice Network highlight the vexed nature of tax management schemes.

Transfer pricing (TP) is more than a mere technical practice, as it involves wealth transfers initiated by powerful economic players. From a neoliberal justification of fair markets and shareholder wealth maximisation, the moral ambiguity is attenuated because it is accepted as a normative social ideal.

Prior studies on TP and tax schemes are primarily theoretical and conceptual. This paper adopts a rhetorical approach which provides important insights into the communication devices used to legitimate taken-for-granted ideas about corporate actions.

This study examined social media, tax morale, and tax compliance behaviour. Partial Least Square-Structural Equation Modelling (PLS-SEM) was utilized to investigate the quantitative data gathered from 592 salaried and self-employed taxpayers in East Malaysia, comprising two regions – Sabah and Sarawak. The results showed that social media had no significant effect on tax compliance. There was, however, a significant and negative relationship between social media and tax morale. A significant and positive effect of tax morale on tax compliance was also discovered. The bootstrapping technique indicated that tax morale mediates the association between social media and tax compliance. This research is among the earliest in a developing country to investigate the effect of social media in enhancing tax compliance, thus, contributing to the tax literature with a broader focus.

Despite the unique features and potential applications in various industries, widespread blockchain adoption is hindered for several reasons. One of them is the lack of government regulations regarding blockchain and cryptocurrencies. However, a deliberate preliminary analysis of the policy initiatives by various jurisdictions proved otherwise, and a lack of sound academic literature on the policy initiatives on blockchain worldwide was evident. Addressing this gap, this study aims to summarize the policy initiatives of jurisdictions around the world, assessing if governments do not enact many regulations.

A systematic literature review was adopted in this study, in which the authors shortlisted a set of research papers and policy reports using several selection criteria and a screening process.

It was found that numerous policy initiatives have been enacted by governments worldwide, and blockchain applications are also being piloted or practiced successfully in several nations. It was also evident that governments are reluctant to accept cryptocurrencies as legal tender while embracing their underlying technology, blockchain.

To the best of the authors’ knowledge, this paper appears to be one of the first attempts to summarize the blockchain policy initiatives contributing to the body of knowledge on blockchain adoption.

India launched Smart City Mission in 2015 with an objective of development of 100 smart cities with a completion deadline in 2019 that was extended till June 2023. Smart City Mission is an important mission in the backdrop that urban population in India is projected to be 67.55 crore in 2035 from 48.30 crore in 2020. Further, by 2035, the percentage of population in India at mid-year residing in ‘urban area’ will be 43.2% as per the United Nations – Habitat's World Cities Report 2022 and it will be just next to China's urban population in 2035 that is projected at 1.05 billion. A recent World Bank report (2022) estimated that India will need to invest US (United States) $840 billion over the next 15 years, i.e. US $55 billion per annum – into urban infrastructure if it has to effectively meet the needs of its fast-growing urban population.

This chapter focuses on financing of sustainable smart cities in India. This chapter summarises financing options explored by the government in the beginning, challenges faced in financing of Smart City Mission in India over a period due to various developments such as pandemic, delay in execution of projects under the Smart City Mission, among others. Finally, suggestions have been given for making financing means effective and sustainable. These suggestions are based on the gaps between the ‘financing means thought of’ in the beginning and ‘financing means actually applied’ while executing Smart City Mission in India. Financing part is worth exploring in the background that India had the fiscal deficit at 3.9% of Gross Domestic Product (GDP) in 2015–2016 and most recently, the country had the fiscal deficit at 6.71% of GDP in FY22. And the country also dealt with the pandemic like other economies and provided COVID-19 vaccine free of cost to all citizens. Insights are useful for any other economy with a similar sustainable and smart city mission while facing resource constraints.