AN EMPIRICAL STUDY OF GST RETURN FILING PRACTICES AMONG TEXTILE MSMES

Abstract

The implementation of the Goods and Services Tax (GST) in India on July 1, 2017, introduced a unified indirect taxation system aimed at enhancing tax compliance, transparency, and ease of doing business. One of the most significant aspects of GST is the mandatory filing of periodic returns through an online platform. While GST return filing has improved transparency and tax administration, it has also imposed compliance obligations on Micro, Small, and Medium Enterprises (MSMEs), particularly in the textile sector. Textile MSMEs play a vital role in India's economy by contributing to employment generation, industrial output, and exports. However, many textile enterprises face challenges related to digital literacy, technical infrastructure, documentation requirements, reconciliation of Input Tax Credit (ITC), and frequent regulatory changes. The present study aims to examine GST return filing practices among textile MSMEs and identify the factors influencing compliance behavior. The study is based on primary data collected from 150 textile MSME owners and managers through a structured questionnaire. Descriptive and inferential statistical tools are proposed to analyze the data. The findings are expected to provide valuable insights into GST compliance practices and suggest measures to improve the efficiency of GST return filing among textile MSMEs.