Perception of Traders Post GST Implementation: A Study of State of Punjab

Abstract

The dawn of Goods and Services Tax (GST) has ushered a new wave of much needed significant tax reforms in India. The replacement of prevalent multiple indirect tax culture by a single indirect tax has placed India at par with around 160 countries of the world where this type of tax is prevalent. This gigantic tax reform has received mixed reactions from the various factions of Indian industry consisting of manufacturers, wholesalers and retailers. The present paper aims at exploring the perception of business enterprises operating at small, medium and large scale with respect to incidence of GST and procedural requirements involved under the new levy. The present study has been conducted with a sample size of 300 respondents from the State of Punjab by using a structured questionnaire. The findings of the study has revealed that all the three segments of industry have a negative perception towards the GST implemented as regards to its different rates which they consider to be very high. Further, they have expressed their concerns over quick and frequent changes made during initial months impacting various procedural requirements that caused a great deal of confusion among them. The findings of the study would surely be of great help to Indian policy makers for making suitable adjustments as perceived by the business community.