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1Mr. Aman Goel, 2Dr. Garima Mishra
1Research Scholar, 2Research Guide
1,2Department Of Commerce & Management
Apex University, Jaipur
“A good tax system is one that is simple in structure but powerful in impact.”
By Adam Smith
ABSTRACT: – The new technology-driven framework of the Goods and Services Tax (GST) introduced in 2017 had a fundamental transformation to India’s indirect taxation arrangements by bringing together central and state taxes into one. Between 2017 and 2026, GST has developed into one of the most technically dense compliance ecosystems in the world, particularly after the introduction of GST 2.0 in September 2025, with simplified tax slabs, return filing automation, and live compliance monitoring. The study focuses to examine the impact of digital tax compliance on business efficiency of industrial units particularly in Delhi NCR, focusing on the rapid emerging industrial precinct of Ghaziabad in Uttar Pradesh with distinctive manufacturing, steel and MSME clusters.
The research is grounded on field-level reality by including trends of GST collections, compliance behavior, and the prevalence of technology adoption among India’s industrial units for the region of NCR. GST 2.0 has revolutionized compliance operations with e-invoicing proliferation, real-time Input Tax Credit (ITC) matching, AI fraud identification, API-based return filing, automation of reconciliation etc., and the reduction of manual involvement and transparency. Indeed, these reforms facilitated enhanced tax administration and revenue performance, as demonstrated by India’s record GST collections of over ₹22 lakh crore in 2024–25 and sustained growth in 2025–26. At the regional level, there has been a measurable increase in local tax revenue in Uttar Pradesh largely attributable to improved adherence to digital legal requirements with collections peaking at around ₹9,731 crore in February 2026, facilitated by e-invoicing mechanisms and AI reviews, as well as better enforcement actions. Such trends are also apparent in the industrial clusters of Ghaziabad where increased digital compliance has led to a drop in tax evasion, better management of invoices, and accelerated supply chain management. The analysis also shows that GST 2.0 is extending beyond business efficiency in the daily economy of the general citizen.
The rationalization of tax slabs into a single, easy to use structure (mainly 5% and 18%) has helped cut the price of necessities and thus lowered the purchase price, impacting households’ spending behavior directly in places such as the urban city of Delhi NCR. We have also increased consumer consciousness concerning and confidence in market transactions using digital billing, QR based invoices, and transparent tax disclosure. Digital tax compliance has a positive and statistically significant impact on business efficiencies, especially the reduction of waiting time and increasing working capital management through faster ITC claims, according also to empirical research findings. Yet, problems like adaptation to technological changes, compliance costs, and more frequent changes in regulations remain among SMEs in Ghaziabad. The research identifies GST 2.0 as turning towards a new traditional system of taxation that also is based on data and regulation, allowing for digital compliance systems that enable an efficient industrial sector and shape how citizens interact in the economy on a daily basis. The results have key policy implication for strengthening digital infrastructure, for simplifying compliance management, and for fostering inclusive adoption in small industry in developing cities.
KEYWORDS:- Goods and Services Tax (GST), GST 2.0 Reforms, Digital Tax Compliance, Business Efficiency, E-Invoicing System, Input Tax Credit (ITC), AI-Based Tax Administration, Automated Return Filing, Real-Time Compliance Monitoring, Industrial Units Performance, Delhi NCR Economy, Ghaziabad Industrial Cluster, MSMEs under GST, Tax Transparency and Accountability, Digital Governance Framework, Supply Chain Efficiency, Tax Revenue Growth (2017–2026), Consumer Price Rationalization, Digital Billing and QR Invoicing
REFERENCES
· Government Sources: Ministry of Finance, Government of India – GST Reports, GSTN (Goods and Services Tax Network) Reports, Delhi Government – Department of Trade & Taxes, Government of Uttar Pradesh – Industrial Development Reports
· Research & Articles: Deloitte GST Survey Report (2025), GSTN 8-Year Report (2025), AI-driven GST Compliance Study, GST Compliance Simplification Study
· Industry Sources: GST Compliance Data NCR, GST Scrutiny Insights Delhi NCR
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