Assessing the Impact of the Goods and Services Tax (GST) on Small and Medium Enterprises (SMEs) in India: Challenges, Opportunities, and Policy Implications
Keywords:
Goods and Services Tax (GST), Small and Medium Enterprises (SMEs), Tax Compliance, Supply Chain Efficiency, Business CompetitivenessAbstract
One of the biggest tax reforms in India is the Goods and Services Tax (GST), which aims to increase economic efficiency and establish a single indirect tax structure. GST presented opportunities as well as difficulties for small and medium-sized businesses (SMEs). By analyzing secondary data from government sources, trade journals, scholarly studies, and polls, this study investigates the effects of GST on Indian SMEs. The impact of GST on supply chain operations, working capital, pricing decisions, technology adoption, compliance, and overall competitiveness is assessed in this research. The results demonstrate that although GST improved transparency and streamlined interstate commerce, SMEs still struggle with issues like cash flow constraints, digital literacy, return files, and compliance expenses. Policy ideas to lessen administrative burdens and make GST more SME-friendly are included in the paper's conclusion.
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