- Sunday, Dec 7th, 2025
International Journal of Advanced Research in Arts, Science, Engineering & Management (IJARASEM)
(A High Impact Factor, Monthly, Peer Reviewed Journal)
(A High Impact Factor, Monthly, Peer Reviewed Journal)
| TITLE | GST and Its Impact on MSMEs in India– A Post-Implementation Analysis |
|---|---|
| ABSTRACT | The Goods and Services Tax (GST), implemented in India on July 1, 2017, represents one of the most significant fiscal reforms in the country's economic history. By replacing a complex web of central and state taxes with a unified tax regime, GST aimed to create a seamless national market, reduce tax cascading, and enhance ease of doing business. However, its impact on Micro, Small, and Medium Enterprises (MSMEs)—which form the backbone of India's economy, contributing approximately 30% of GDP and employing over 110 million people—has been a subject of intense debate. This research paper conducts a comprehensive post-implementation analysis of GST's effects on MSMEs, evaluating both intended benefits and unintended challenges. The study examines multiple dimensions, including compliance burdens, operational efficiency, cost structures, profitability, and working capital management. Using a mixed-methods approach, the paper analyzes secondary data from government reports (GST Council, Ministry of MSME), RBI bulletins, and industry surveys (FICCI, CII), alongside case studies of affected enterprises in key sectors such as textiles, handicrafts, and food processing. The paper concludes with actionable policy recommendations to optimize GST for MSMEs, including simplified return filing processes, an increased Composition Scheme threshold, faster ITC refund mechanisms, and targeted digital training programs. |
| AUTHOR | Dr. Sunita Beniwal Assistant Professor, Department of Economics, Govt. Girls College, Hetamsar, Jhunjhunu, Rajasthan, India |
| VOLUME | 12 |
| ISSUE | 2 |
| 78_GST and its Impact on MSMEs in India.pdf | |
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