Advances in Consumer Research
Issue 1 : 1503-1509
Original Article
Compliance Complexity under GST: Challenges Faced by Micro and Small Enterprises in India
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1
Research Scholar, Jawaharlal Nehru Technological University, Anantapur, Ananthapuramu, Andhra Pradesh, India
2
Professor, Department of Management Studies, Sri Venkateswara College of Engineering (Autonomous), Tirupati, Andhra Pradesh, India
Abstract

The Goods and Services Tax (GST) was introduced in India to simplify indirect taxation and promote formalisation. However, compliance requirements under GST have posed significant administrative challenges for micro and small enterprises. The Present study examined GST compliance complexity and its implications for micro and small enterprises in India using a secondary data-based analytical approach. The study integrated statutory GST notifications issued by the Central Board of Indirect Taxes and Customs, enterprise structure data obtained from Udyam Registration statistics, and international benchmarking indicators from the World Bank Enterprise Survey. GST compliance complexity was assessed through the analysis of return filing obligations, procedural amendments, and legal requirements. The findings indicated that compliance complexity arose from frequent regulatory changes and recurring return filing requirements, with repeated deadline extensions signalling persistent compliance difficulties rather than transitional issues. Procedural and legal amendments further increased interpretational demands for enterprises with limited administrative capacity. The dominance of micro enterprises within the Micro, Small and Medium Enterprises ( MSME ) sector amplified the overall impact of such compliance burdens. International benchmarking evidence suggested that Indian firms devoted a substantial share of managerial time to regulatory compliance, reinforcing the broader administrative context within which GST operates. The study highlighted the need for simplifying and stabilising GST compliance procedures, particularly for micro and small enterprises. By linking regulatory compliance changes with enterprise structure, the study offered policy-relevant insights for improving the effectiveness and inclusiveness of India’s GST regime.

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