Canons of Taxation and Goods and Services Tax (GST): An Empirical Assessment of Taxpayer Perception and Compliance

GST, Canons of Taxation, Tax Compliance, Digital Taxation, Coimbatore, Indirect Taxes, Taxpayer Satisfaction

The Goods and Services Tax (GST) is one of the most important indirect tax reforms in India with the aim of introducing one single tax system and improving transparency, efficiency and ease of doing business. But the success of GST is largely dependent upon its adherence to the three principles of taxation namely equity, certainty and convenience and economy which were laid out by Adam Smith. This study examines taxpayers' perceptions of GST using these classical taxation principles. The primary data was gathered by applying a structured questionnaire among 250 registered taxpayers of Coimbatore district of Tamilnadu comprising retailers, manufacturers, service providers, professionals and small business owners. Descriptive statistics, Chi-square analysis, multiple regression, PESTLE analysis and qualitative content analysis are used to analyze the factors that affect the satisfaction and compliance of taxpayers. The results showed that simplicity, digital accessibility and awareness of the importance of and perceived fairness have a positive effect on taxpayer satisfaction and voluntary compliance. The study ends with the policy recommendations for the enhancement of GST administration and boost of the tax payers' confidence.