A Comprehensive Review of the Operational Dynamics of MSMEs in the Context of Goods and Service Tax (GST) Provisions

Abstract

India's Goods and Services Tax (GST) has had a big effect on Micro, Small, and Medium Enterprises (MSMEs), an area that is very important to the country's economic growth. Specifically, this review looks at how GST has changed the way MSMEs work by examining its impact on compliance, tax structure, and operating efficiency. Before GST, small and medium-sized businesses (MSMEs) had trouble with the complicated, multi-layered tax system, which often led to rising taxes and regulatory bottlenecks. With the introduction of GST, a single tax system has been created, making revenue easier and lowering the costs of production and transportation. However, the new system also makes things harder for small and medium-sized businesses (MSMEs), especially when it comes to licensing costs, adopting new technology, and getting used to digital filing systems. This review looks at how GST has divided its effects into two groups: improving processes on the one hand, and adding new rules and requirements for compliance on the other. Additionally, it looks at government programs meant to make the change easier for MSMEs, including financial rewards and simpler tax reports for smaller businesses. This study shows how MSMEs can adjust to the new tax system and use its benefits for long-term growth by looking at both the issues and possibilities that GST brings. According to the results, MSMEs need ongoing policy support and skill development to stay competitive and strong in the GST system.