Psychologicalimpact of GST on Small Business Abbul Hasan Khan (Associate professor) Monad [email protected] ABSTRACT: India is very unique by birth it is known for good hospitality andecofriendly business environment forsmall and big player equally by RBI survey almost nine million SMEs are existedin India. what you see and hear both are not correct some time such situationemerge than the role of SMEs come in picture let me clear it by givingestimation by researcher that Number of SMEs are behind one big company. Thatis why contribution of this sector is directly 7% and indirectly 30% in economy.But since implementation of GST raises several questions on very existence ofthe sector because 70% are not in threshold limit of GST so these are not inrange of getting input tax credit.
Under the previous tax regime, if yourbusiness had operations across many states, you would have to register for saletax/ VAT with each state’s sales tax department in order to do businessactivities .The reason that every state had different tax laws complicated theentire process, and business owners had to pay many procedural charges for VATregistration and uncontrolled chain of cascading started. Under GST, theregistration is centralized and the rules are uniform for all the states acrossthe country. Key words: GST, GSTIN, GST No. SME Input tax credit, Introduction:Indian society is mix of everything maybe culture religion and caste so thebusiness. Here small business are mostly family driven and big business has thesame conditions that is why son of cobbler is cobbler and son of businessman isbusinessman by analysis of The economic time only 10 families are bagging morethan 70% business and alone 2% population share 58% asset of the country.Despite being so complicated and uneven distribution of wealth and businessIndia is known for land of startup and SMEs.
But all small business isperforming their business in very simple way in modern language relay on bricksand mortar. So the fair of implementingGST uniformly to every business houses small or big both. Left most of smallbusinessman goes without sleep in nights. In my study I talked to 100 odd smallbusinessmen of Crossing republic GZB and Greater Noida West( UP) and two senior persons of a company dealingwith billing software they almost meet to 100 of people every day. And got veryuseful information which is integral part of my studyGSTN:Thissoftware 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 Financewith 11% stake and ICICI Bank, HDFC, HDFC Bank and NSE Strategic InvestmentCorporation Ltd with 10% stake each.
LiteratureReview: Dr. C. J.
Priya |Harshitha M GST the biggest TaxReform in India founded on the notion of “One Nation, One Market, One Tax” isfinally here. The movement that the Indian government was waiting for thedecade has finally arrived. The single biggest Indirect tax regime has kickedinto force, dismantling all the inter-state barriers with respect to trade. TheGST rollout, with the single stroke, has converted India into a unified marketof 1.
3 billion citizens. The idea behind implementing GST across the country in29 states & 7 union territories is that it would offer a win- to-winsituation for everyone. Manufacturers & Traders would benefit from fewertax filing, transparent rules & easy booking; consumers would pay less forthe goods & services and the government would generate more revenues. Sothis paper tries to throw a light on various aspects of GST and to know itsprobable impact on Indian economy and its sectors. The data are collectedthrough various secondary sources like reports of Government, professionalbodies, working committees and also from research papers, articles, news,budget sessions etc. Problemswith GSTThey are not used to maintaining accounting booksThey are confused about filling of returnsThey also worried about penalties and fine on thebase of non compliance of GSTHow can they turn traditional business into computeroperated modern one? Benefitsof GSTBuyers 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 fromthe department. Enjoy betterreputationReduction of tax burdenMany taxes to single taxRemoval of cascadingSimplification 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:GSTis biggest reform no doubt about it butmy study shows that people are not ready for this radical change and a lot ofconfusion is built in the mind and heart of common people.
Despite being noble intention andgreater importance given by world bodies things cannot turn better on theground. And continuous meetings of GST council and in every meeting the resultsare less or more as per expectations if there is any election period is near socouncil reacts differently than routine one. GST is more than just a taxchange.
It is also a ‘behavior change’ and its successful implementation willdepend on how well we as a nation adapt to the new requirements of doingbusiness. Post the initial teething troubles, it is expected that GST will bringin much good for all sectors and all sections of society Referenceshttp://www.ijtsrd.com/papers/ijtsrd5898.
pdfA Comprehensive Guide Book on GST India by Clear TaxUnion Budget speech of Arun JaitlyThe economic times ( 1 July 2017 to 1january 2018) Annexure I I am asking about GST and I am independentresearcher your views are important for academic purposes nothing to do withanything regarding tax authorities and your personal information not bedisclosed 1. Whatdo you think about GST?2. Whatimpact do you see on your business?3. Doyou know GST remove tax evasions?4. Doyou think it creates transparency and reduce corruption?5. Do you know threshold limit of GST? Plagiarism Checker By EduBirdie. Check Your Essay For Free93.3%The uniqueness of the text