IMPECT OF GST ON PRICING AND COMPLIENCE SMALL BUSINESS
Author name:- Anjali Vinod Sharma
Guide name :-DR..Kirti Varma
College name:- Changu Kana Thakur (CKT) arts, commerce & science College,New panvel
Abstract :
The Indian economy is one of the fastest growing in the world, with small and medium-sized enterprises (SMEs) playing a vital role in driving growth, employment, and innovation. Among the many reforms introduced to strengthen the economy, the implementation of the Goods and Services Tax (GST) on 1st July 2017 has been one of the most transformative. GST was not merely a tax reform; it was a structural reform aimed at bringing about uniformity, transparency, and efficiency in the indirect taxation system of India. Before GST, the Indian taxation system was extremely complicated. Both the Central and State governments imposed a variety of indirect taxes such as excise duty, service tax, value-added tax (VAT), central sales tax (CST), entry tax, and octopi. Each tax had its own set of rules, rates, and compliances, which created confusion for businesses operating across different states. This fragmented system led to a cascading effect of taxes, commonly referred to as the “tax on tax” problem. For example, excise duty was levied by the central government on the manufacture of goods, and then VAT was levied by the states on the sale of those goods, without allowing full input credit. This resulted in increased costs, higher prices for consumers, and lower competitiveness of Indian businesses in the global market.