Suggestions and Constraints Perceived by Shopkeepers towards Goods and Services Tax

Abstract

The Goods and Services Tax (GST), implemented on July 1, 2017 is regarded as a major  taxation reform till date implemented in India since independence. The primary objective  behind development of GST was to subsume number of indirect taxes under one umbrella which  simplifies taxation system for service and commodity businesses. GST was expected to convey  various advantages to economy as an indirect tax and simplifies the workload of shopkeepers  but it resulted in lack of clarity and time consuming process. With this assumption, study was  planned to find out the constraints faced by shopkeepers and suggestions given by them regarding  the implementation of Goods and Services Tax (GST). The study was carried out purposively in  Hisar city of Haryana State, where, thirty shopkeepers from five respective section were selected i.e.  Foods, Clothing and Textiles, Electrical appliances, Medical and Cosmetics and Communication  and Transportation; thus making total sample of 150 respondents. Results from data inferred  that majority of the respondent’s complained that filing GST has been more complicated now,  there is increased tax compliance, high competition faced by shopkeepers and changing tax rate  slabs by the central government is confusing them and making it difficult to understand the  process. Furthermore, majority of the shopkeepers also suggested that there should be reduction  of legal formalities, tax should be collected by the government at the manufacturing level itself  and they don’t have to file for returns at later stages. They also suggested that registration should  be there for all the traders and service providers with exemptions for small scale suppliers from  collecting and remitting GST and casual trade category should be abolished.