Impact of GST on the Working of Rural India - A Study Assessing the Impacts of the New Taxation System on Business Sector in Lower Himachal Pradesh
TSM Business Review INTERNATIONAL JOURNAL OF MANAGEMENT (A Double Blind, Peer Reviewed Bi- Annual Journal) Volume 6 Number 1 June 2018
26 Pages Posted: 28 Nov 2018
Date Written: June 30, 2018
GST is one indirect tax for whole nation, making India one unified common market. GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer. Different stake holders to the legislation have prospered different effects from the act. For business and industry, it will enhance Easy compliance, Uniformity of tax rates and structures, Removal of cascading, improved competitiveness, etc. For Central and State Governments, it will make them easy to administer better control tax leakage and increase revenue efficiency. For the consumers, it will brings a single and transparent tax proportionate to the value of goods and services purchased and gives them relief in tax burden. Still there is chaos in the market that how the act will impact the business and the myths are well affecting the business activity. In order to statistically test the impact, a small study has been conducted covering 100 Merchants and Vendors from the region of lower Himachal Pradesh, including different locations in the districts of Una, Bilaspur, Mandi, Hamirpur, Dharamshala have been surveyed from the region, supplemented by descriptive views of twenty five auditors / financial and legal advisors of the said region. Convenience sampling with a blend of snowball sampling has been used for the purpose. Various techniques of analysis including factor analysis and Discriminant analysis have been used for the purpose of analysis and hence interpretation. The results suggest that there is an excessive need of education towards the act to prevent afraid reaction and boost a smooth flow of business activity, which has been well interrupted after the introduction of the legislation. The study is useful to judge the impacts of the new taxation in the region, suggesting way out to succeed the business activity.
Keywords: Rural Indian Economy, Indian Indirect Taxation, GST and Unorganised Sector
JEL Classification: P45, P48
Suggested Citation: Suggested Citation