GST - Positive and Negative Impacts on Small Scale Industries

Analyzing the Impact of GST on Small Scale Industries

Abstract

The Goods and Services Tax (GST) has been heralded as the biggest indirect tax reform in India after Independence. After much deliberation, the GST bill has been passed in the Rajya Sabha and is set to be discussed in the state legislative assemblies in this winter session. With the ball set to roll for a unified country-wide tax reform, the market is filled with new found optimism amongst industry leaders and government officials. Goods and Service Tax (GST) is an indirect tax levied in India on the sale of goods and services or both except taxes on the supply of the strong liquor for human consumption. GST is a broad tax levy on manufacture, sale and the consumption of goods and services at a national level. The present research has been conducted to analysis the positive and negative impact of GST on small - scale industries. The single GST replaced several former taxes and levies which included central excise duty, service tax, customs duty, surcharges, state-level value added tax and octroi. Small scale industries play a significant role in the overall growth of an economy. The implementation of GST is certainly going to affect this sector and the employees associated with it.