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Psychological
impact of GST on Small Business

Abbul
Hasan Khan 

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(Associate
professor)

                                                                                                                 
Monad University

 

                                                                                                                                             
[email protected]

 

 

                                                
                                                                                             

ABSTRACT:  India is very unique by birth it
is known for good hospitality and ecofriendly   business environment for small and big player
equally by RBI survey almost nine million SMEs are existed in India. what you
see and hear both are not correct some time such situation emerge than the role
of SMEs come in picture let me clear it by giving estimation by researcher that
Number of SMEs are behind one big company. That is why contribution of this
sector is directly 7% and indirectly 30% in economy .But since implementation
of GST raises several questions on very existence of the sector because 70% are
not in threshold limit of GST so these are not in range of getting input tax credit.
Under the previous tax regime, if your business had operations across many
states, you would have to register for sale tax/ VAT with each state’s sales
tax department in order to do business activities .The reason that every state
had different tax laws complicated the entire process, and business owners had
to pay many procedural charges for VAT registration and uncontrolled chain of
cascading started. Under GST, the registration is centralized and the rules are
uniform for all the states across the country.

Key
words: GST, GSTIN, GST No. SME Input tax credit,

 

 

Introduction:
Indian society is mix of everything maybe culture religion and caste so the
business. Here small business are mostly family driven and big business has the
same conditions that is why son of cobbler is cobbler and son of businessman is
businessman by analysis of The economic time only 10 families are bagging more
than 70% business and alone 2% population share 58% asset of the country.
Despite being so complicated and uneven distribution of wealth and business
India is known for land of startup and SMEs. But all small business is
performing their business in very simple way in modern language relay on bricks
and mortar.  So the fair of implementing
GST uniformly to every business houses small or big both. Left most of small
businessman goes without sleep in nights. In my study I talked to 100 odd small
businessmen of Crossing republic GZB and Greater Noida West  and two senior persons of a company dealing
with billing software they almost meet to 100 of people every day. And got very
useful information which is integral part of my study

 

Literature Review: Dr. C. J. Priya | Harshitha M 

GST the biggest Tax
Reform in India founded on the notion of “One Nation, One Market, One Tax” is
finally here. The movement that the Indian government was waiting for the decade
has finally arrived. The single biggest Indirect tax regime has kicked into
force, dismantling all the inter-state barriers with respect to trade. The GST
rollout, with the single stroke, has converted India into a unified market of
1.3 billion citizens. The idea behind implementing GST across the country in 29
states & 7 union territories is that it would offer a win- to-win situation
for everyone. Manufacturers & Traders would benefit from fewer tax filing,
transparent rules & easy booking; consumers would pay less for the goods
& services and the government would generate more revenues. So this paper
tries to throw a light on various aspects of GST and to know its probable
impact on Indian economy and its sectors. The data are collected through various
secondary sources like reports of Government, professional bodies, working
committees and also from research papers, articles, news, budget sessions etc.

 

 

 

 

Problems
with GST

They are not used to maintaining accounting books

They are confused about filling of returns

They also worried about penalties and fine on the
base of non compliance of GST

How can they turn traditional business into computer
operated modern one?

 

 

 

 

 

 

Benefits
of GST

Reduction of tax burden

Many taxes to single tax

Removal of cascading

Simplification of tax return

 

Data interpretations

Category
of Business

Response

Numbers

Awareness
level in %

Confectionary

Positive

20

60%

Restorent1

Negative

10

40%

Furniture

Positive

10

70%

Builders

Negative

20

30%

RO distributor

Negative

20

50%

Professional

positive

 10

20%

Grocery

 Positive

 10

90%

 

 

 

 

 

Conclusion:
GST
is biggest reform  no doubt about it but
my study shows that people are not ready for this radical change and a lot of
confusion is built in the mind and heart of common  people. Despite being noble intention and
greater importance given by world bodies things cannot turn better on the
ground. And continuous meetings of GST council and in every meeting the results
are less or more as per expectations if there is any election period is near so
council reacts differently than routine one.

 

 

 

References

http://www.ijtsrd.com/papers/ijtsrd5898.pdf

 

 

 

 

 

 

 

Annexure I

 

I am asking about GST and I am independent
researcher your views are important for academic purposes nothing to do with
anything regarding tax authorities and your personal information not be
disclosed

 

1.      What
do you think about GST?

2.      What
impact do you see on your business?

3.      Do
you know GST remove tax evasions?

4.      Do
you think it creates transparency and reduce corruption?

5.       Do you know threshold limit of GST?

 

 Psychological
impact of GST on Small Business

Abbul
Hasan Khan 

(Associate
professor)

                                                                                                                 
Monad University

 

                                                                                                                                             
[email protected]

 

 

                                                
                                                                                             

ABSTRACT:  India is very unique by birth it
is known for good hospitality and ecofriendly   business environment for small and big player
equally by RBI survey almost nine million SMEs are existed in India. what you
see and hear both are not correct some time such situation emerge than the role
of SMEs come in picture let me clear it by giving estimation by researcher that
Number of SMEs are behind one big company. That is why contribution of this
sector is directly 7% and indirectly 30% in economy .But since implementation
of GST raises several questions on very existence of the sector because 70% are
not in threshold limit of GST so these are not in range of getting input tax credit.
Under the previous tax regime, if your business had operations across many
states, you would have to register for sale tax/ VAT with each state’s sales
tax department in order to do business activities .The reason that every state
had different tax laws complicated the entire process, and business owners had
to pay many procedural charges for VAT registration and uncontrolled chain of
cascading started. Under GST, the registration is centralized and the rules are
uniform for all the states across the country.

Key
words: GST, GSTIN, GST No. SME Input tax credit,

 

 

Introduction:
Indian society is mix of everything maybe culture religion and caste so the
business. Here small business are mostly family driven and big business has the
same conditions that is why son of cobbler is cobbler and son of businessman is
businessman by analysis of The economic time only 10 families are bagging more
than 70% business and alone 2% population share 58% asset of the country.
Despite being so complicated and uneven distribution of wealth and business
India is known for land of startup and SMEs. But all small business is
performing their business in very simple way in modern language relay on bricks
and mortar.  So the fair of implementing
GST uniformly to every business houses small or big both. Left most of small
businessman goes without sleep in nights. In my study I talked to 100 odd small
businessmen of Crossing republic GZB and Greater Noida West  and two senior persons of a company dealing
with billing software they almost meet to 100 of people every day. And got very
useful information which is integral part of my study

 

Literature Review: Dr. C. J. Priya | Harshitha M 

GST the biggest Tax
Reform in India founded on the notion of “One Nation, One Market, One Tax” is
finally here. The movement that the Indian government was waiting for the decade
has finally arrived. The single biggest Indirect tax regime has kicked into
force, dismantling all the inter-state barriers with respect to trade. The GST
rollout, with the single stroke, has converted India into a unified market of
1.3 billion citizens. The idea behind implementing GST across the country in 29
states & 7 union territories is that it would offer a win- to-win situation
for everyone. Manufacturers & Traders would benefit from fewer tax filing,
transparent rules & easy booking; consumers would pay less for the goods
& services and the government would generate more revenues. So this paper
tries to throw a light on various aspects of GST and to know its probable
impact on Indian economy and its sectors. The data are collected through various
secondary sources like reports of Government, professional bodies, working
committees and also from research papers, articles, news, budget sessions etc.

 

 

 

 

Problems
with GST

They are not used to maintaining accounting books

They are confused about filling of returns

They also worried about penalties and fine on the
base of non compliance of GST

How can they turn traditional business into computer
operated modern one?

 

 

 

 

 

 

Benefits
of GST

Reduction of tax burden

Many taxes to single tax

Removal of cascading

Simplification of tax return

 

Data interpretations

Category
of Business

Response

Numbers

Awareness
level in %

Confectionary

Positive

20

60%

Restorent1

Negative

10

40%

Furniture

Positive

10

70%

Builders

Negative

20

30%

RO distributor

Negative

20

50%

Professional

positive

 10

20%

Grocery

 Positive

 10

90%

 

 

 

 

 

Conclusion:
GST
is biggest reform  no doubt about it but
my study shows that people are not ready for this radical change and a lot of
confusion is built in the mind and heart of common  people. Despite being noble intention and
greater importance given by world bodies things cannot turn better on the
ground. And continuous meetings of GST council and in every meeting the results
are less or more as per expectations if there is any election period is near so
council reacts differently than routine one.

 

 

 

References

http://www.ijtsrd.com/papers/ijtsrd5898.pdf

 

 

 

 

 

 

 

Annexure I

 

I am asking about GST and I am independent
researcher your views are important for academic purposes nothing to do with
anything regarding tax authorities and your personal information not be
disclosed

 

1.      What
do you think about GST?

2.      What
impact do you see on your business?

3.      Do
you know GST remove tax evasions?

4.      Do
you think it creates transparency and reduce corruption?

5.       Do you know threshold limit of GST?

 

 

 

 

 

 

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