Impacts of perceived tax fairness & tax complexity for GST structure on tax compliance: The perspectives of small and medium enterprises (SMEs)

Abstract

GST is an indirect tax imposed on consumptions of goods & services. Current study evaluated the prevalence of tax compliance, tax fairness and tax complexity for GST among Indian SMEs by taking sample of 728 from Haryana. Also, impacts of tax fairness and tax complexity on GST compliance were examined. We found GST’s complexities among SMEs are intense and their GST compliance and perceived GST fairness are low. Tax complexities are adversely affecting tax compliance but tax fairness has positive influence. Clearly, in order to improve GST compliance, policymakers need to improve GST’s fairness and reduce its complexities for taxpayers.