GST 2.0 Reforms and Women-led Enterprises: Assessing Business Performance and Economic Inclusion in Telangana, India

Abstract

The Goods and Services Tax (GST) 2.0 reforms aim to strengthen India's tax administration by promoting compliance, transparency, and economic inclusion. This study examines the impact of GST 2.0 reforms on business performance and economic inclusion among women-led enterprises in Telangana. Using a quantitative, cross-sectional research design, primary data were collected from 280 women entrepreneurs through a structured questionnaire using a convenience sampling technique engaged in manufacturing, trading, services, and agriculture/allied sectors. Structural Equation Modelling (SEM) was employed to examine the relationships among GST Awareness and Compliance, Input Tax Credit (ITC) and Financial Impact, Business Performance, and Economic Inclusion. The findings reveal that GST awareness and compliance significantly enhance both business performance and economic inclusion. Similarly, effective utilisation of ITC contributes positively to enterprise performance and broader economic participation. Business performance further emerges as a significant driver of economic inclusion, indicating that financially stronger enterprises are better positioned to participate in the formal economy and generate sustainable employment opportunities. The study highlights that GST 2.0 extends beyond tax administration and serves as an important policy instrument for promoting women's entrepreneurship and inclusive economic development. The findings suggest that strengthening digital literacy, simplifying compliance procedures, improving ITC efficiency, and providing targeted institutional support can further enhance the effectiveness of GST reforms for women-led enterprises. This study contributes to the literature on taxation, entrepreneurship, and gender-inclusive economic development by providing empirical evidence from Telangana and offers practical policy implications for strengthening inclusive fiscal governance.