IMPACT OF GST ON SMALL AND MEDIUM ENTERPRISES
International Journal of Computer Science (IJCS) Published by SK Research Group of Companies (SKRGC)
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Abstract
The Goods and Services Tax (GST) is one of the most significant tax reforms introduced in India with the objective of creating a unified indirect tax structure. Small and Medium Enterprises (SMEs) constitute a major part of the Indian economy and contribute substantially to employment generation, industrial output, and exports. The implementation of GST has brought both opportunities and challenges for SMEs. While the tax system has simplified multiple indirect taxes and enhanced transparency, compliance requirements and technological adaptation have posed difficulties for small businesses. This paper examines the impact of GST on SMEs, focusing on operational efficiency, taxation structure, compliance burden, cost implications, competitiveness, and overall business performance. The study also discusses the benefits and challenges experienced by SMEs and suggests measures to improve the effectiveness of GST implementation.
References
- Government of India, Goods and Services Tax Act, Ministry of Finance, New Delhi, 2017.
- GST Council, Annual Report on GST Implementation, Government of India, 2024.
- Reserve Bank of India, Handbook of Statistics on Indian Economy, RBI Publications, 2024.
- K. Kumar, "Impact of GST on Small Businesses in India," International Journal of Management Studies, vol. 7, no. 3, pp. 55–63, 2019.
- R. Sharma, "GST and MSME Growth in India," Journal of Business Research, vol. 8, no. 2, pp. 41–48, 2020.
- A. Singh, "Digital Transformation of SMEs under GST," International Journal of Commerce and Economics, vol. 9, no. 1, pp. 72–80, 2021.
- P. Patel, "Economic Effects of GST on Indian Enterprises," Asian Journal of Economics and Finance, vol. 11, no. 4, pp. 95–108, 2022.
- Ministry of MSME, Annual Report 2024–25, Government of India.
- World Bank, Ease of Doing Business Report, 2023.
- NITI Aayog, Economic Survey of India, Government of India, 2024.
Keywords
Goods and Services Tax (GST), Small and Medium Enterprises, Tax Reforms, Compliance, Economic Growth, Input Tax Credit.
