ITC Vs Composition scheme: an empirical evidence of issues and challenges for utilization of input tax credit in GST among the business houses of North-Bangalore
Keywords:: Input tax credit, Composition scheme, Business Houses of Bangalore North, ITC utilization.
Cascading was the serious problem under indirect tax regime till 2017, the CST, excise duty, service tax, customs duty were the central government levy which were not allowed to take credit on state levy. Input tax credit were implemented to avail tax credit across the supply chain. This paper focuses to analyse the key issues and challenges in implementing ITC. It has examined individuals and businessmen perception regarding ITC utilisation as compared to registering under composition scheme of GST.
The data has been gathered from a well administered questionnaire which can pool the views of trading community about the appeal of ITC and composition scheme. Responses were analysed through descriptive statistics and relevant hypothesis testing tools which can conclude the meaningful interpretation. The business community appealing more towards hassle free composition scheme, and remained to be unregistered dealer rather than registration and availing input tax credit.