Impact of GST on Small Scale Business with Special Reference to Chennai

Abstract

The research paper focuses on the impact of enacting the Goods and Services Tax (GST) personified in the Indian Tax structure on small scale business. The paper also discusses the anticipated barriers and future predictions for GST. The Goods and Services Tax (GST) is a vast notion that simplifies the giant tax structure by supporting and augmenting the economic growth of a country. GST is a comprehensive tax levy on manufacturing, sale and consumption of goods and services at a national level. India’s historic and bold move towards integrated tax structure is viewed by most economists as an answer to regressive indirect tax structure. It is a comprehensive tax system that will subsume all indirect taxes of states and central governments and unified the economy into a seamless national market. Descriptive research is used for this study and a total of 200 samples were collected from the general public by convenient sampling method. The independent variables include age, gender, educational qualification, occupation and the monthly income of the respondents. The dependent variable include whether GST is a fair taxation system, whether GST has become a major burden of compliance, level of satisfaction on present level of tax rate, whether GST has eliminated the cascading effects of various tax, the findings of the research suggest that GST is an positive step towards improving the economy of the country and also it is seen that GST helps in setting up small business and it does not have any negative impact on the small scale industries.