Advanced Data Science and Computational Intelligence

(Annual (One issue per year))

ABSTRACT

This research examines the transition to and implementation of the Goods and Services Tax (GST) in India, focusing on organizational adherence and the key factors influencing tax compliance. Utilizing a quantitative approach and a stratified, risk-based sample of 100 respondents comprising business clients, professionals, and external tax consultants the study evaluates the practical challenges faced by these stakeholders. Scale reliability analysis confirms excellent internal consistency with a Cronbach’s Alpha of 0.922. The regression model demonstrates a moderate-to-strong relationship (R = 0.609), with a coefficient of determination (R square = 0.370) showing that the independent variables explain 37% of the variance in overall compliance. The analysis reveals that GST knowledge, training, and business transaction complexity are the primary statistically significant predictors affecting compliance behaviour. While the tax reform has successfully created a more transparent and unified market framework, a persistent digital divide and procedural complexities continue to pose substantial operational strains. Practically, these findings indicate that sustainable compliance cannot be forced through stricter penalties. Instead, tax authorities must take targeted action to simplify filing workflows, stabilize IT infrastructure, and deliver continuous technological training, thereby easing the administrative and cash-flow burden on resource-constrained businesses.

Keywords: GST Compliance; Input Tax Credit (ITC); Tax Reform; Small and Medium Enterprises (SMEs); GSTR Reconciliation; Digital Transformation; Tax Knowledge; Transaction Complexity