Impact of GST on Unorganized Business Sector Compliance Costs and Coping Strategies

View Full Paper

Ask AI

Bookmark

Authors

Discussion

Explores how GST influences compliance costs and coping strategies in informal firms, indicating potential for inclusivity.

GST increases compliance costs by 3–6% of turnover in informal firms, impacting their operational viability.
Insights were gathered from 40 interviews and secondary data, focusing on micro and small enterprises across three Indian states.
Coping strategies such as collective resource pooling and selective digitalization emerged as resilience mechanisms among entrepreneurs.
The study highlights a need for policy re-engineering to ensure GST fosters inclusive growth rather than exclusion.

Singh et al. (2024) studied this question.

View Full Paper

Ask AI

Bookmark