A study conducted by the Centre for Multi-Disciplinary Development Research (CMDR), Dharwad, has revealed that while many people are not fully familiar with the technical aspects of the Goods and Services Tax (GST), they largely recognize its benefits in improving transparency, widening the tax base, and making the tax system more organized.
Study Overview
The study, titled 'Socioeconomic Impact of GST: Both its Introduction and Reforms, Consumption Patterns, and Influence on the Middle Class and Neo-middle Class,' was sanctioned by the Indian Council of Social Science Research (ICSSR), Ministry of Education, Government of India. As part of the research, CMDR conducted nine focus group discussions across different districts of Karnataka and collected data to understand the impact of GST on consumers, traders, and various sectors of the economy.
GST Colloquium in Dharwad
To discuss the findings, CMDR organized a GST colloquium in Dharwad on June 18. The event brought together 36 delegates from seven districts, representing sectors such as chartered accountancy, garments, construction, finance, cooperatives, hospitality, insurance, and education. Senior officials, including the Deputy Commissioner of GST, Dharwad, and vice chancellors of Karnataka University and University of Agricultural Sciences, Dharwad, attended the programme.
Key Findings
The discussions revealed that GST's broader objectives have received support from stakeholders. Participants acknowledged that GST has increased transparency and encouraged formal business practices. However, many felt that compliance procedures remain complicated, especially for small traders and micro, small, and medium enterprises (MSMEs).
Recommendations
The panel recommended simplifying GST return filing and input tax credit (ITC) procedures to reduce the compliance burden. It also suggested strengthening AI-based monitoring and grievance redressal systems, introducing nationwide GST education and certification programmes, and establishing stronger price monitoring and anti-profiteering mechanisms.
The participants recommended greater support and higher threshold limits for MSMEs, and emphasized that future GST reforms should protect the purchasing power of middle and neo-middle-class households while ensuring a stable and easy-to-understand tax system. The colloquium concluded that policymakers must balance revenue collection with ease of compliance to ensure GST delivers its full benefits to businesses and consumers alike.
CMDR Director Basavaprabhu Jirli, experts Pushpa Hongal, Prof. R.R. Kulkarni, Prateek Mali, Jai Prabhakar, Dundappa Y.B., and interns and research scholars attended the event.
