A Study on Factors Influencing GST Noncompliance by Selected Small Business Owners of Sabarkantha District

Abstract

Many indirect taxes in India have been replaced by the Goods and services tax. The prime objective of present study is to check relation between five independent variables namely tax complexities, tax knowledge, service quality, detection probabilities and compliance cost to the dependent variable: GST noncompliance behavior of selected small business owners of Sabarkantha district of North Gujarat region. Inferential statistical research design has used and research instrument of study is structured questionnaire which was distributed among small business owners of various areas (talukas) of Sabarkantha district The result of present study shows that tax knowledge, tax complexities, service quality and detection probability has influence on GST non-compliance by selected small business owners. In order to change the behavior and perceptions regarding GST non-compliance, policy makers need to improve tax knowledge of small business owners, and they have to improve the satisfaction of tax payers and increase the frequency of audit for more compliance make simple tax system so compliance cost can be reduced and tax complexities also reduce.