Journal of Commerce and Management Thought

The Indian auto industry is one of the largest in the world. The industry accounts for 7.1% of the country's Gross Domestic Product (GDP). Almost 13% of the revenue from central excise is from this sector and claims a size of 4.3% of total exports from India. Despite its contribution to the economy and growth potential, this sector has been combating the hardship of high tax rates for substantially a long period of time now with central excise duty ranging between 12.5% to 30% coupled with introduction of multiple cesses at revenues whims and fancies, most recent being infrastructure cess. The present study focuses on “A Study of Impact of Goods & Services Tax (GST) on Shares return of Indian Auto Companies”. This study aims to find the reaction of Indian Auto Companies Share return with respect to the announcement of GST rates and also tries to test efficiency of the stock market. The performance of stock market and its behavior serves as an indicator of the reactions of the economy of the nation. The Goods and Services Tax is a major tax reform in India which is most likely to boost the economic growth of the country. This expectation of the investors is assumed to be transformed to stock price returns that are either negative or positive. So for GST impact is concerned, here Daily, Monthly and Yearly, pre and post GST implementation share return is taken and different statistical tools applied to find impact of GST n these returns.