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Author(s):

Mohamed.R | Dr. M.D. Chinnu
Keywords:

GST (Goods And Services Tax), SMEs (Small And Medium Enterprises), Compliance Burden, Input Tax Credit, Tax Reform, Economic Impact, Digital Adaptation, Ease Of Doing Business
Abstract:
The Rollout Of The Goods And Services Tax (GST) In India Has Had A Drastic Effect On Small And Medium Enterprises (SMEs), Offering Opportunities As Well As Challenges. On The Positive Side, GST Has Streamlined The Tax System By Consolidating Several Indirect Taxes Into One System, Eliminating The Cascading Effect Of Taxes And Allowing SMEs To Avail Input Tax Credit (ITC). This Has Increased Transparency And Made Interstate Commerce Easier, Enabling SMEs To Reach Wider Markets. However, The Added Compliance Requirement In The Form Of Regular Filings And Online Record-keeping Has Increased Costs Of Operation For Most Small Companies. The Implementation Of The Composition Scheme Has Also Eased The Burden On Smaller Units By Providing Lower Tax Rates And Easy Compliance. Still, Issues Like Insufficient Awareness, Digital Adaptation, And Implementation Challenges During The Early Phases Have Been Testing The Waters Of SMEs. In General, Though GST Has Made The Taxation System More Simplified And Competitive For A Few SMEs, Many Others Still Suffer From Compliance Difficulties And Cost Challenges.

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