The Impact of GST on Small Entrepreneurs

The Impact of GST on Small Entrepreneurs

Author Name : N. Malaiselvam, Dr. M. Bala Subramaniam

ABSTRACT

The Indian government has taken a major step in the direction of indirect tax reform. Since 1 July 2017, it implemented goods and service tax (GST) in place of other indirect taxes. The idea behind GST is to bring uniformity in goods and services price across the nation. This new system brings a lot of transparency in indirect tax structure of our country. It will also help in tracking tax evasion. GST will bring a lot of changes in Indian economy. This will also help in removing obstacle of doing business in our country. In this way, it will attract lot of domestic and foreign investors to set up their business in India. Once foreign companies start their operation in India, they will hire lot of Indian youth to do work in their business. This will pave the way to sort out the problem of unemployment in India and enhance our foreign exchange reserve. Business development will further enhance the infrastructure growth in our nation.  India is a global production plant, and SMEs account for about 90% of its industrial facilities. The Indian government's "Make in India" campaign will promote the launch of GST. this paper based on the survey based on the effect of the implementation of GST on the SMEs in which the problems associated with the GST will be primaries and it was concluded that a lot of people were still unable to understand the working of GST and they have to make understand their customer also, most of the youngster believe that with time all the problems were automatically solved and the fair face of GST will always profitable to everyone.

Key wards: Goods and Service Tax (GST), Gross Domestic Product (GDP), Small and Medium Size Enterprises (SMEs), Service Sector, Hospitality Sector, Food Items, Durable items.