Impact of Goods and Services Tax (GST) on the Indian Mechanical Manufacturing Sector: Challenges, Opportunities and Future Prospects

The Goods and Services Tax (GST), implemented in India on 1 July 2017, replaced multiple indirect taxes with a unified taxation system to simplify tax administration and improve industrial competitiveness [6], [7]. This review paper analyses the impact of GST on the Indian mechanical manufacturing sector, including automobile manufacturing, machine tool manufacturing, foundry and casting, heat treatment, metrology, welding equipment, and industrial machinery. The study is based on secondary data collected from published research papers, government reports, and official publications [1]–[10]. The findings indicate that GST has reduced cascading taxation through the Input Tax Credit (ITC) mechanism, improved logistics and supply chain management, and enhanced business transparency [1], [2]. However, delayed ITC refunds, compliance complexity, and frequent policy changes remain major challenges [3], [4]. Overall, GST has contributed positively to the growth and competitiveness of India's mechanical manufacturing sector. Keywords : Goods and Service Tax(GST), Mechanical Manufacturing, Automobile Industry, Machine Tools, Foundry Industry, Heat Treatment, Metrology, Input Tax Credit(ITC), Supply Chain Management, Industrial Development.