A STUDY ON THE VARIABLES INFLUENCING GST NONCOMPLIANCE AMONG SELECTED SMALL-BUSINESS OWNERS

Abstract

GST is indirect tax which is levied on consumptions of any goods and services. In this study, owners of small businesses from several areas (talukas) in Gujarat's Sabarkantha district were analyzed about their perspectives and factors contributing to their noncompliance of GST. The purpose of the current study is to determine how GST non-compliance is affected by factors such as knowledge of tax, complexities of tax, compliance cost, service quality of GSTD and probabilities of detection Primary data has been utilized through 160 structured questionnaires which were distributed to targeted respondents and out of which 156 responses were collected. By applying simple percentage analysis, reliability, Factor analysis, and Multiple Regression analysis, data has been analyzed. Research indicates that non-compliance of GST is influenced by factors such as knowledge of tax, complexities of tax, service quality of GSTD and probabilities of detection, but doesn't affect compliance costs. Policy makers need to lower tax complexity and compliance costs, as well as increase small business owners' tax knowledge, in order to alter the general perception of GST non-compliance.