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25 J. Legal Ethical & Regul. Isses 1 (2022)
Role of GST Knowledge in GST Compliance: Evidence from Small Enterprises of Haryana State in India

handle is hein.journals/jnlolletl25 and id is 231 raw text is: Journal of Legal, Ethical and Regulatory Issues ROLE OF GST KNOWLEDGE IN GST COMPLIANCE: EVIDENCE FROM SMALL ENTERPRISES OF HARYANA STATE IN INDIA Sanjay Nandal, Maharshi Dayanand University Diksha Khera, Maharshi Dayanand University ABSTRACT Goods & Services tax (GST) is a consumption-based indirect tax that levies on value- added in goods or services. In India, GST is implemented as a new taxation reform on 1 July 2017 to transform previous indirect structure of multiple taxes and improve tax revenue generation and tax compliance. Therefore, since its implementation, needs and interests of assessing taxpayers' GST compliance and GST knowledge have attracting attentions of researchers, academicians and policymakers. Our study has made an attempt to assess GST knowledge and GST compliance levels among Indian taxpayers and also examined influence of GST knowledge on GST compliance. We have focused on population of GST registered small enterprises of Haryana state in India and solicited responses from 658 sample units by using semi-structured questionnaire and purposive sampling. We used descriptive statistics and CB- SEM as analysis techniques. The results led to conclusion that levels of GST knowledge and GST compliance in small enterprises are low and GST knowledge is a strong positive predictor of GST compliance. The policy implication of study is government should strengthen GST knowledge of taxpayers in order to improve GST compliance. Lastly, our study has suggested ways for improving taxpayers' GST knowledge. Keywords: GST, GST Knowledge, GST Compliance, Small Enterprises. INTRODUCTION Tax compliance is defined as the correct filing of tax returns, timely filing of taxable income and payment of amounts when due (Franzoni, 2000). Compliance with tax regulations is very important for sustainable economic development, as the revenue generated through taxes is the major source for government to finance public services, infrastructural facilities, social services and other spending needs (Musimenta, 2020). Braithwaite (2009) stated that tax noncompliance occurs when actual amount of tax paid differentiates from actual amount of tax due. Tax noncompliance may be intentional avoidance or evasion or may be unintentional due to calculation errors and inadequate understanding of laws (Robben et al., 1990; Webley, 2004). Taxpayers who do not fulfill the tax requirements, deliberately or not, according to tax laws and regulations, are considered to have committed criminal activity and are also liable for penalty and prosecution according to laws (Eric et al., 2019). In both developed and developing economies, tax compliance is a major problem for taxation authorities and policymakers, as to 1 1544-0044-25-1-137 Citation Information: Nandal, S., & Khera, D. (2022). Role of GST knowledge in GST compliance: Evidence from small enterprises of Haryana state in India. Journal of Legal, Ethical and Regulatory Issues, 25(1), 1-20 Volume 25, Issue 1, 2022