Exploring the User Behaviour towards GST Adoption in India: Insights from PLS-SEM Analysis

Abstract

GST, or “Goods and Services Tax”, is a comprehensive indirect tax levied on the supply of goods GST, a pivotal facet of India's taxation system, represents a transformative approach to streamlining tax processes and nurturing economic prosperity through its comprehensive imposition on goods and services. This study delves into the intricate realm of user behavior surrounding GST adoption, employing “Partial Least Squares Structural Equation Modeling (PLS-SEM)” to unravel the complex interplay among various factors. By meticulously scrutinizing 135 valid responses out of 200 collected through a rigorous survey methodology, this research ensures robustness in its findings. Notably, the study underscores the reliability and validity of its measurement model, with all constructs within the established thresholds, thus laying a solid foundation for subsequent analysis. Structural model analysis reveals significant relationships between perceived usefulness, ease of use, compatibility, observability, cost, user satisfaction, attitude, and user behavior regarding GST adoption. Specifically, perceived usefulness and ease of use positively impact attitude, while perceived compatibility, observability, and cost positively influence user satisfaction. Moreover, user satisfaction and attitude positively influence user behavior. These findings offer valuable insights into the factors influencing GST adoption and have implications for policymakers, practitioners, and researchers.