Psychological Impact of GST on Small Business
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@ IJTSRD | Available Online @ www ISSN No: 245 Inte R Psychological Associate Prof ABSTRACT India is very unique by birth it is kn hospitality and eco friendly business en small and big player equally by RBI nine million SMEs are existed in India. and hear both are not correct some time emerge than the role of SMEs come in clear it by giving estimation by re Number of SMEs are behind one big c is why contribution of this sector is di indirectly 30% in economy .But since im of GST raises several questions on ver the sector because 70% are not in thre GST so these are not in range of get credit. Under the previous tax regime, if had operations across many states, you register for sale tax/ VAT with each st department in order to do business a reason that every state had differe complicated the entire process, and bu had to pay many procedural charg registration and uncontrolled chain started. Under GST, the registration is c the rules are uniform for all the stat country. Keywords: GST, GSTIN, GST No. SM credit Introduction: Indian society is mix of everything m religion and caste so the business. Here are mostly family driven and big bus same conditions that is why son of cobb and son of businessman is businessman The economic time only 10 families are w.ijtsrd.com | Volume – 2 | Issue – 2 | Jan-Feb 56 - 6470 | www.ijtsrd.com | Volum ernational Journal of Trend in Sc Research and Development (IJT International Open Access Journ Impact of GST on Small Busin Abbul Hasan Khan fessor, Monad University, Uttar Pradesh, India nown for good nvironment for survey almost . what you see e such si tuation picture let me esearcher that company. That irectly 7% and mplementation ry existence of eshold limit of tting input tax f your business would have to tate’s sales tax activities .The ent tax laws usiness owners ges for VAT of cascading centralized and tes across the ME Input tax maybe culture small business siness has the bler is cobbler by analysis of e bagging more than 70% business and alon 58% asset of the countr complicated and uneven dist business India is known for la But all small business is perfo very simple way in modern la and mortar. So the fair uniformly to every business h Left most of small businessma nights. In my study I talk businessmen of Crossing rep Noida West (UP) and two company dealing with billing meet to 100 of people every d information which is integral p GSTN: This software is back this software GST could n Combined Stake of Central an GSTN is 49%the remaining among five financial institutio LIC Housing Finance with Bank, HDFC, HDFC Bank Investment Corporation Ltd w Literature Review: (Dr Arun). There are much a proposed GST regime regardi Economy and its effects thereo economy, destination based compliance cost and efficien paper examines the impact of (GST) on economic growth I person can charge and colle supplies of goods and service 2018 Page: 650 me - 2 | Issue – 2 cientific TSRD) nal ness ne 2% population share ry. Despite being so tribution of wealth and and of startup and SMEs. orming their business in anguage relay on bricks of implementing GST houses small or big both. an goes without sleep in ked to 100 odd small public GZB and Greater o senior persons of a g software they almost day. And got very useful part of my study k bone of GST without not fully implemented. nd State Government in g 51% stake is divided ons— 11% stake and ICICI k and NSE Strategic with 10% stake each. apprehension relating to ing the growth in Indian of. As we know in India taxation requires high nt administration. This f goods and services tax India. Only a registered ect GST on the taxable es made by him. GST is
description
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 states 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. Abbul Hasan Khan "Psychological Impact of GST on Small Business" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-2 | Issue-2 , February 2018, URL: https://www.ijtsrd.com/papers/ijtsrd9446.pdf Paper URL: http://www.ijtsrd.com/management/accounting-and-finance/9446/psychological-impact-of-gst-on-small-business/abbul-hasan-khan
Transcript of Psychological Impact of GST on Small Business
@ IJTSRD | Available Online @ www.ijtsrd.com
ISSN No: 2456
InternationalResearch
Psychological I
Associate Professor, Monad
ABSTRACT
India is very unique by birth it is known for good hospitality and eco friendly 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 siemerge 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 implemenof 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 chargesregistration and uncontrolled chain of cascading started. Under GST, the registration is centralized and the rules are uniform for all the states across the country. Keywords: GST, GSTIN, GST No. SMEcredit 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
@ IJTSRD | Available Online @ www.ijtsrd.com | Volume – 2 | Issue – 2 | Jan-Feb 2018
ISSN No: 2456 - 6470 | www.ijtsrd.com | Volume
International Journal of Trend in Scientific Research and Development (IJTSRD)
International Open Access Journal
Psychological Impact of GST on Small Business
Abbul Hasan Khan Associate Professor, Monad University, Uttar Pradesh, India
India is very unique by birth it is known for good friendly 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
ou 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
: GST, GSTIN, GST No. SME Input tax
ty 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
conomic 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
GSTN: This 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 institutionsLIC Housing Finance with 11% stake and ICICI Bank, HDFC, HDFC Bank and NSE Strategic Investment Corporation Ltd with 10% stake each. Literature Review:
(Dr Arun). There are much apprehension relating to proposed GST regime regarding the growth in Indian Economy and its effects thereof. As we know in India economy, destination based taxation requires high compliance cost and efficient administration. This paper examines the impact of goods and services tax (GST) on economic growth India. Only a registered person can charge and collect GST on the taxable supplies of goods and services made by him. GST is
Feb 2018 Page: 650
6470 | www.ijtsrd.com | Volume - 2 | Issue – 2
Scientific (IJTSRD)
International Open Access Journal
mpact of GST on Small Business
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.
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
y 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
ral part of my study
This 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—
Housing Finance with 11% stake and ICICI Bank, HDFC, HDFC Bank and NSE Strategic Investment Corporation Ltd with 10% stake each.
(Dr Arun). There are much apprehension relating to proposed GST regime regarding the growth in Indian
omy and its effects thereof. As we know in India economy, destination based taxation requires high compliance cost and efficient administration. This paper examines the impact of goods and services tax (GST) on economic growth India. Only a registered
on can charge and collect GST on the taxable supplies of goods and services made by him. GST is
International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470
@ IJTSRD | Available Online @ www.ijtsrd.com | Volume – 2 | Issue – 2 | Jan-Feb 2018 Page: 651
charged on the value or selling price of the products. The amount of GST incurred on input (input tax) can be deducted from the amount of GST charged (output tax) by the registered person. This way GST is easy and transparent indirect tax. .This is regressive tax risks puller to Ambani both pay equally
Historic moment in tax reform
Taxes were levied at each stage separately at various rates under the Indian Taxation System. But the new GST (Goods and Services Tax) has been established as the unified indirect tax on goods and services. The GST was launched on midnight 1 July, 2017 at a special event in the presence of President Pranab Mukherjee and Prime Minister Narendra Modi. From July 1, 2017, the GST being levied in India is in five categories, at the rates of zero percent, 5%, 12%, 18% and 28% per annum. Latest update by the Finance Ministry: Commodities of daily use like washing powder, aftershave cream, detergent, chocolate are likely to get cheaper as the GST Council has decided to keep only 50 items in the top tax bracket of 28 per cent. The decision was taken at a ‘close-door’ meeting of GST Council in Guwahati on Friday. Gifts up to a value of Rs 50,000/- per year by an employer to his employee are outside the ambit of GST. Gifts of more than Rs 50,000/- made without consideration are subject to GST, when made in course or furtherance of business
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
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 reputation 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% Restaurant Negative 10 40% Furniture Positive 10 70% Builders Negative 20 30% RO distributor Negative 20 50% Professional positive 10 20% Grocery Positive 10 90%
International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470
@ IJTSRD | Available Online @ www.ijtsrd.com | Volume – 2 | Issue – 2 | Jan-Feb 2018 Page: 652
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. 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 REFERENCES
1. A Comprehensive Guide Book on GST India by Clear Tax
2. Union Budget speech of Arun Jaitly 3. The economic times (1 July 2017 to 1january
2018)
International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470
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4. KHAN A.H (International Journal of Trend in Scientific Research and Development (IJTSRD) International Open Access Journal) Indian Banking Sector and Micro Finance
5. http://www.ijtsrd.com/papers/ijtsrd5898.pdf 6. http://www.ijtsrd.com/papers/ijtsrd4596.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?
