Gst Awareness And Compliance Behaviour Among Msme Entrepreneurs In Thiruvananthapuram District

Abstract

This paper examines the nature and growth of gold imports in India over 15 years from 2009–10 to 2023–24. The Goods and Services Tax (GST) is a landmark tax reform introduced in India to simplify the indirect taxation system and enhance transparency in business operations. The success of GST largely depends on the level of awareness and compliance behaviour of taxpayers, particularly Micro, Small and Medium Enterprise (MSME) entrepreneurs, who constitute a significant segment of the Indian economy. The present study aims to examine the level of GST awareness and compliance behaviour among MSME entrepreneurs in Thiruvananthapuram District, Kerala.

The study is based on both primary and secondary data. Primary data were collected from 110 MSME entrepreneurs using a structured questionnaire, while secondary data were obtained from journals, books, government reports, and relevant websites. A descriptive and analytical research design was adopted for the study. Statistical tools such as Percentage Analysis, F-Test, ANOVA, and Correlation Analysis were employed to analyze the collected data. The findings reveal that the majority of MSME entrepreneurs possess a moderate level of GST awareness. The study further indicates that educational qualification significantly influences GST awareness among entrepreneurs.

The ANOVA results show that GST compliance behaviour differs significantly across various types of businesses. Correlation analysis reveals a positive relationship between business experience and GST compliance behaviour and a strong positive relationship between GST awareness and compliance behaviour. The findings suggest that entrepreneurs with higher GST awareness are more likely to comply effectively with GST registration, return filing, and tax payment requirements.

The study concludes that GST awareness plays a crucial role in shaping compliance behaviour among MSME entrepreneurs. Continuous awareness programmes, simplified compliance procedures, and improved digital support systems are essential for enhancing GST compliance and ensuring the effective participation of MSMEs in the formal economy. Strengthening GST awareness and compliance behaviour will contribute to better tax administration, business sustainability, and economic development..