V2I12P29

Study on Impact of GST on Accounting Processes and Financial Reporting at Prime Gases Private Limited

Neha Sharma^1*

Abstract

The introduction of Goods and Services Tax (GST) in India represents a structural reform that has reshaped indirect taxation and fundamentally altered accounting processes and financial reporting practices across sectors. This paper examines the impact of GST on day to day accounting operations, financial statement presentation, compliance processes, and audit preparedness at Prime Gases Pvt. Ltd., a multi unit industrial and medical gases company operating across South India. Using a mixed method, case study–based design, the study integrates descriptive analysis of existing accounting and reporting processes with analytical evaluation of primary data collected from 55 respondents, including accounting staff, management, compliance personnel, and external consultants associated with the company. The findings indicate that GST has significantly increased the workload of accounting professionals, enhanced invoicing accuracy, standardized reconciliations, and improved transparency and audit readiness, while simultaneously creating challenges related to Input Tax Credit (ITC) reconciliation, vendor dependency, time pressure, and technology reliance. The paper concludes with recommendations on strengthening technological infrastructure, simplifying ITC processes, enhancing training, and providing targeted support to small and medium enterprises (SMEs), with implications for practitioners, policymakers, and researchers concerned with GST driven reforms in accounting and financial reporting.

Keywords:

GST, Accounting Processes, Financial Reporting, ITC Reconciliation, Compliance, Prime Gases Pvt. Ltd.