Article Details
  • Published Online:
    January  2025
  • Product Name:
    The IUP Journal of Accounting Research & Audit Practices
  • Product Type:
    Article
  • Product Code:
    IJARAP180125
  • DOI:
    10.71329/IUPJARAP/2025.24.1.345-361
  • Author Name:
    M Rajarajeswari and Gayathri C
  • Availability:
    YES
  • Subject/Domain:
    Finance
  • Download Format:
    PDF
  • Pages:
    345-361
Volume 24, Issue 1, January 2025
Impact of GST on Small-Scale Industries in Tamil Nadu: A Comparative Analysis
Abstract

Goods and Services Tax (GST) is used in over 160 countries around the world. It was introduced in India on July 1, 2017 to have a uniform single taxation system for the nation, and launched with the objective of “One Nation, One Tax”. Before GST, the Indian indirect tax system had multiple central, state and other taxes. The paper studies the impact of GST on Small-Scale Industries (SSIs) in Coimbatore, Tamil Nadu, assesses opportunities for SSIs in the implementation of GST, which is an indirect tax imposed on the supply of product. For this, purposive sampling technique has been used to collect data from 120 SSIs. The study found that the implementation of GST has significantly lessened tax evasion. The study also highlights the benefits and drawbacks of GST and offers suggestions to improve GST.

Introduction

Goods and Services Tax (GST) is a single national indirect tax system that subsumed all the multiple state, central, and other taxes. It is a comprehensive and destination-based tax system, paving the way for a harmonized indirect tax system in India (Maruthi, 2020).