Analysis of Impact of GST from the Perception of Paperboard Box and Bags Manufacturers in Thanjavur City

Abstract

“A simplified tax structure and unified market will improve operational efficiencies, especially of MSMEs with a wider reach” from the words of Moorthy, the GST made unique implications on the small and cottage industries, positively and negatively. Small-scale, cottage, and village industries have played a significant and indisputable part in the growth of the nation since independence. With the implementation of the Goods and Services Tax, the Indian economy is becoming more and more formalized, trapping most small and cottage businesses in the indirect tax system. Despite having professional qualifications and practical experience in their respective fields, the entrepreneurs in these areas are primarily ignorant. They were successful in their endeavor to rely on technically skilled individuals for tax payment, return filing, and related procedures because of this understanding. In this purview the researcher interested in knowing the impact of GST on paperboard box, bags manufacturing, as Tamil Nadu is in the verge of ban of plastic carry bags and other items in commercial places. So the researcher aimed to study the impact of GST on manufacturing of paper board boxes and bags in Thanjavur City from all the manufacturers which counts to 26 in total and the data collected by interview schedule. The paper highlights the positive and negative impact of GST on small and cottage industries. The study revealed a divided perception of GST among respondents: 38% considered it beneficial to their business, while an equal percentage of manufacturers perceived it as unfavourable. The researcher analysed the impact of GST from the perception of paper bag and box manufacturers concentrated within Thanjavur City limits.