IMPACT OF GST ON SMALL AND MEDIUM IN INDIA

Goods and Services Tax (GST) had promised to revolutionize the Indian tax system. Earlier, the total tax collection in India was around 14.5 Lakh Crore, of which 34% was indirect tax. Indirect taxes include service tax, stump duty, customs duty, Value Added Tax (VAT), etc. In most of the developing countries, the share of indirect tax is higher than the direct tax. However, it is vice versa in the developed countries. The new GST was meant to bring every indirect form of tax under one roof. For example, before the total tax levied by the central and the state governments add up to 32%, but, with the implementation of GST, the business owners have to pay a much lower tax of around 18-22 percent. Besides, they do not have to pay different taxes to various departments. Consequently, it becomes convenient for the business owner. Against this backdrop, this paper presents an overview of GST concept, explains the implementation and impact GST on small and medium enterprises (SMEs).