Perception of GST and GSTN-Related Compliance Issues among Manufacturers, Wholesalers, and Retailers in Moradabad, Uttar Pradesh

Abstract

The Goods and Services Tax (GST) was a major reform in the indirect tax regime in India, aimed at streamlining
the tax processes and making business easy. For Small and Medium Enterprises (SMEs) and in semi-urban
industrial areas, however, the impact of GST has relied largely on digital compliance on the GST Network
(GSTN). This study explores the perception of GST and GST related compliance issues of manufacturers,
wholesalers and retailers at Moradabad, Uttar Pradesh. The study was conducted with 150 SME proprietors with
the use of a quantitative research design that involved the use of structured questionnaire. Descriptive analysis,
reliability analysis, regression analysis, ANOVA, one-sample tests and effect size estimation were conducted on
the data obtained using the SPSS program.
The results have shown that respondents are aware of the advantages of GST in terms of concept but there are
a number of challenges in relation to digital compliance. The inefficiencies in the GSTN portal, mismatches in
returns, delays in processing, procedural complexity were also identified as statistically significant and had a
negative impact on GSTN's overall perception of GST. The regression analysis suggests that various GST
compliance factors are significant for this, and that technological infrastructure is particularly important for GST
acceptance. Also, significant variations were identified by business category with manufacturers having more
compliance requirements than wholesalers and retailers.
The study concludes that the effectiveness of GSTN can be further enhanced through strengthening the
functionality of the GSTN, streamlining compliance process and targeted support towards SMEs at the grassroot
level. The results provide policy insights for improving digital tax administration and support development of a
more inclusive and effective GST in emerging industrial areas for SMEs.