Psychological and the rules are uniform for all the

impact of GST on Small Business


Abbul Hasan Khan

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(Associate professor)

Monad University

[email protected]




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,



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( UP)  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

software is back bone of GST without this software GST could not fully implemented.
Combined Stake of Central and State Government in GSTN is 49%the remaining 51%
stake is divided among five financial institutions—

LIC Housing Finance
with 11% stake and ICICI Bank, HDFC, HDFC Bank and NSE Strategic Investment
Corporation Ltd with 10% stake each.


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.





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?







of GST

Buyers can get input tax credit immediately

Attract more business

Reduce chances of audit by the tax authorities.

A low GST rating will attract higher scrutiny from
the department.

 Enjoy better

Reduction of tax burden

Many taxes to single tax

Removal of cascading

Simplification of tax return


Data interpretations

of Business



level in %

















RO distributor

















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. GST is more than just a tax
change. It is also a ‘behavior change’ and its successful implementation will
depend on how well we as a nation adapt to the new requirements of doing
business. Post the initial teething troubles, it is expected that GST will bring
in much good for all sectors and all sections of society





A Comprehensive Guide Book on GST India by Clear Tax

Union Budget speech of Arun 

The economic times ( 1 July 2017 to 1january 2018)








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


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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