Evaluating GST Return Filing Efficiency and Compliance Behavior among SMEs in India: Challenges, Insights, and Future Pathways
Disha Agrawal, Student
Dr. Gazala Yasmin Ashraf, Professor and Head- UG Department
Amity Business School, Amity University Chhattisgarh Raipur
Abstract
Since its implementation in 2017, the Goods and Services Tax (GST) in India has redefined indirect taxation through a unified structure aimed at increasing transparency and reducing tax cascading. Central to this system is the periodic filing of returns—critical for revenue collection, compliance monitoring, and input tax credit (ITC) flow. This study assesses the effectiveness and behavioral patterns surrounding GST return filing among small and medium enterprises (SMEs), emphasizing practical challenges like ITC mismatches, digital limitations, and filing complexity. A mixed-methods approach combining a primary survey of 75 GST-registered businesses and secondary literature reveals persistent gaps in portal usability, regulatory understanding, and filing accuracy. Based on these findings, the study offers evidence-based recommendations to streamline compliance, such as user-centric portal redesign, quarterly return options for small taxpayers, and integrated real-time reconciliation tools. The paper concludes with implications for policymakers and tax administrators to drive long-term GST efficiency.
Keywords: GST, Tax Compliance, Input Tax Credit, Digital Filing, SMEs, GSTR-1, GSTR-3B, Indian Tax Reform, Taxpayer Behavior, Portal Usability
