The present research work attempts to examine the constructs accountable for the accumulation of GSTRefund with the government and its corresponding adverse impact on the accelerated working capital requirement of the industry. Under the GST regime, the input tax can be adjusted against the output tax and the balance if any shall be carried forward untilit is fully recouped. The unadjusted input tax shall remain with the government, which undoubtedly enhancesthe working capital requirement or otherwise could be invested in to the fruitful projects and can contribute in the overall return of the organization. The over demanding working capital requirement due to the GST mechanism had surely made a dent on the industrial liquidity and is sending their future of the industry into dark. The present research work further investigates the exact influence of the accumulation of the GST on the working capital requirement of the industry. The extensive research work in this direction exhibit that five factors (legal provision, e-filling, Technical barriers, Transaction cost and GSTmechanism)which are responsible for the agglomeration of working capital requirement such as. Among the five accountable constructs legal provision and constructs relating to e-filling are the most accountable reasons causing harassment of the enhanced working capital requirement.
The whole research work involved the proposed model derived by the researcher on the basis of literature reviewed in this direction. Firstly, the model was explored by the researcher using exploratory factor analysis on the basis of 16 statements using 7 point Likert scale taken from literature reviewed. Then the SEM technique is used through AMOS 18.0 to confer the proposed model and various hypothesis were set and tested during the research work. Five Factor model was explored and confirmed by the researcher which determines the level of pending GST refund with the government. Lastly, the impact of accumulated GST refund on the excessive working capital requirement was measured and remedies to this chronic problem are discussed.