The Role of GST in Shaping the Growth & Challenges of SME’s: A Policy and Economic Perspective

Abstract

The study analyzes the impact of the July 2017 GST rollouts in India on small and medium-sized enterprises (SMEs), focusing on financial performance, operational efficiency, and strategic decision-making. It highlights discrepancies in SME tax compliance between the current and projected GST regime.

The Sustainable Development Goals (SDGs) and the Goods and Services Tax (GST) are closely linked, with GST potentially boosting economic activity by simplifying tax laws and reducing the cascading effect of taxes. A progressive GST system could feature lower rates for needs and higher rates for pleasures, reducing inequality and promoting strong institutions and effective governance. Study on SMEs' GST adjustment revealed challenges like increased compliance costs and cash flow disruptions, but benefits from reduced tax cascading and transparent structure.