1. bookVolume 16 (2021): Issue 1 (April 2021)
Journal Details
License
Format
Journal
First Published
06 Mar 2015
Publication timeframe
3 times per year
Languages
English
access type Open Access

GST and its Impact on Small and Medium Scale Enterprises - A Study of Peenya Industrial Area in Bangalore, Karnataka

Published Online: 26 May 2021
Page range: 81 - 94
Journal Details
License
Format
Journal
First Published
06 Mar 2015
Publication timeframe
3 times per year
Languages
English
Abstract

The introduction of Goods and Services Tax (GST) on 1st July 2017 has revamped the tax structure carving a new path for the Indian economy. The new tax regime was envisioned to be free of problems of the previous tax system but since its proposal, it has received mixed reviews from industries, academia, and others. With extensive changes aimed at One Nation One Tax, it has left a massive impact on Small and Medium Scale Enterprises. The paper critically analyses impact of GST on Small Scale Enterprises specifically in Karnataka. Existing literature says GST shall reduce the cost of doing business, increase transparency, decrease the price of products, improve tax compliance and ease of doing business. This paper proves these assertions through primary data research and further identifies the need for reforms concerning job work, penalties for non-payment of GST, dual administration, and issues pending from previous tax regime. It has also clearly established that the composition scheme has been a non-performer and the reverse charge mechanism must be re-introduced later or revamped to balance its costs and benefits. Thus the study has implications for policymakers, industries, and academia and also provides a better understanding of the new tax system.

Keywords

Anonymous. (2019, July 1). Two years of GST: Road ahead for One Nation One Tax. Retrieved from Economic Times: https://economictimes.indiatimes.com/news/economy/policy/two-years-of-gst-road-ahead-for-one-nation-one-tax/articleshow/70017268.cms?from=mdr Search in Google Scholar

Bangar, D. Y., & Bangar, D. V. (2017). Beginner’s guide to GST. Allahabad: Aadhya Prakashan. Search in Google Scholar

Kumar, A. (2017, June 30). A broken tax chain. The Hindu, p. 7. Search in Google Scholar

Kumari, S. L. (2018). Impact of GST on Indian MSME. International journal of Economics and Social Sciences, 334-348. Search in Google Scholar

Laddha, V., & Patwari, P. (2017). GST: Reverse Charge and Composition Scheme. New Delhi: Taxmann Publications (P.) Ltd. Search in Google Scholar

Pandit, S. (2017). GST: Opportunities and challenges for Indian SME’s. Inspira - Journal of Commerce, Economics and Computer Science, 2018-214. Search in Google Scholar

Prasad, D. I., & Sathya, D. K. (2017). Impact of GST on MSME’s. Journal of Management and Science, 180-183. Search in Google Scholar

Singh, C. (2015, September 11). Utilising MSMEs as engines for growth. The Hindu, p. 1. Search in Google Scholar

Sinha, S. (2018, September 21). Stong opposition pushes MSME Bill to backburner. Retrieved from Business Line: https://www.thehindubusinessline.com/economy/strong-opposition-pushes-msme-bill-to-backburner/article25009770.ece Search in Google Scholar

Venkateshwarlu, M., & Vijaylakshmi, G. (2018). Impact of GST on Micro, Small and Medium Enterprises (MSMEs). International Journal of Engineering and Management Research, 91-95. Search in Google Scholar

Verma, A., Khandelwal, P., & Raj, S. J. (2018). Impact of GST on Regulation of Small Businesses. lOSR-Journal of Business and Management, 81-83. Search in Google Scholar

Recommended articles from Trend MD

Plan your remote conference with Sciendo