Impact Of GST Implementation On Small And Medium Enterprises In India

Abstract

The introduction of the Goods and Service Tax (GST) on 1^st July 2017, changed the taxation system of businesses and led, to create a new direction for India’s economy. The new tax system was planned to fix the issues of the old tax structure. “GST is seen as one of the most major and meaningful financial changes after the India’s Independence.” It has brought together nearly all in-direct taxes that were, earlier charged by both the central and state governments on goods and services, combining them into one single system. However, since it was introduced, it has received both the support and criticism from SMEs, scholars, and others. With the big changes taking place focused on the idea of “One Nation One Tax”, it has strongly affected both small and medium scale businesses of India. The present recent work will let us understand, how GST implementation will lower the business costs, make things more open and clearer, bring down product prices, improve tax payments, and make businesses run easier. The rollout of GST has completely transformed the tax structure. While a few industries have gained advantages from it, others have faced some drawbacks or challenges which will be discussed in the further discussion. Study survey was conducted among 197 associated with small and medium enterprises to know the impact of GST implementation on small and medium enterprises in India and concludes that there is significant impact of GST implementation on small and medium enterprises.