Understanding GST, ITR, And the Balance Sheet Framework

Abstract

This research examines the intricate relationship between Goods and Services Tax (GST), Income Tax Returns (ITR),
and balance sheet frameworks in India's evolving tax landscape. The study aims to analyze GST implementation
impacts on financial reporting, evaluate ITR compliance mechanisms, assess integration challenges, and examine
balance sheet presentation under the new tax regime. Using a mixed-method approach combining quantitative
analysis of tax data collected from 650 participants during 2023-2024 and qualitative assessment of regulatory
frameworks, this research hypothesizes that GST implementation has significantly altered balance sheet structures,
ITR filing processes have become more complex, integration between GST and ITR systems remains challenging, and
standardized frameworks improve compliance efficiency. Results indicate substantial changes in working capital
management (7.3 days reduction in cycle time, p<0.05), increased compliance costs for small enterprises (20%
increase, CI: 15-25%), and enhanced transparency in financial reporting (36.9% improvement in transparency
indicators). The study concludes that while GST has streamlined indirect taxation, its integration with direct tax
systems and balance sheet reporting requires continuous refinement to optimize business operations and regulatory
compliance.