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GST IMPLEMENTATION AND COMPLIANCE CHALLENGES FOR MSMES: A POST-REFORM ANALYSIS

Journal: SHODHKOSH: JOURNAL OF VISUAL AND PERFORMING ARTS (Vol.5, No. 5)

Publication Date:

Authors : ; ; ; ; ;

Page : 934-937

Keywords : GST; MSMEs; Indirect Tax; One Nation; One Tax; Revenue Leakage;

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Abstract

With the inception of GST, one of the largest indirect tax regimes of India, many things fell into place. It was one of the long-awaited opportunities which simplified the tax system in India. An initiative by the Government of India which removed all the trade barriers between the states. Now, the states can easily and freely trade without paying multiple taxes at various levels and it has also become easy for the Government to administer the tax system with more transparency. Thanks to ‘one nation-one market and one tax' principle. It is favorable to all—traders, manufacturers, consumers, and the government alike. It holds equal significance for all stakeholders. GST is implemented nationwide in 29 states and 7 union territories and has benefited manufacturers and traders by abolishing multiple taxes at various levels making it easy to expand their productions in low cost and to make the trade hassle-free. It helped the consumers to get the goods at cheaper rates than before due to cutting various taxes and decreased cost of production. It also helped the Government to refine the taxation process and improve the cascading of taxes thereby making more money and preventing the revenue leakage at various levels. It was enacted by an amendment to the Constitution. A Constitution Amendment Bill (122nd Amendment Bill) was passed by both the houses of the legislature (the Lok Sabha and the Rajya Sabha) through common and broad consensus and then approved by the then President of India, Shri Pranab Mukherjee thereby making it a law in the Year 2016 (101st Constitutional Amendment Act,2016). It was launched on 30th June 2017, showcasing the evidence of the maturity and wisdom of the Indian democracy. The article demonstrates the compliance issues faced by MSMEs in the process of GST implementation

Last modified: 2024-11-08 17:08:00