| Abstract | Digital transformation in tax administration has reshaped compliance systems across India, introducing
online filing, e-invoicing, and real-time reporting under the Goods and Services Tax Network framework.
While these reforms aim to enhance transparency and efficiency, their impact on small taxpayers varies
significantly depending on local digital access and capacity. This study examines the relationship between
digital access and regulatory compliance pressures among small taxpayers in Pollachi, Tamil Nadu—a semiurban
commercial and agricultural hub characterized by micro and small enterprises.
The paper explores how infrastructure availability, digital literacy, affordability of technology, and dependence
on intermediaries influence compliance experiences. It highlights that although smart phone penetration and
internet connectivity have improved, gaps in digital skills, system reliability, and financial resources increase
administrative, financial, and psychological burdens on small business owners. The findings suggest that
mandatory digital compliance without adequate local support mechanisms can disproportionately affect microenterprises.
The study concludes that inclusive policy design—such as simplified filing systems, assisted digital services,
mobile-friendly platforms, and localized capacity-building initiatives—is essential to reduce compliance
pressures and ensure that digital tax reforms contribute to equitable economic participation in towns like
Pollachi.
Keywords: Digital Access - Regulatory Compliance - Small Taxpayers – GST – Pollachi
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