To Study the Impact of Implementation of GST on Productivity of SMEs

Abstract

Conversely, the transition to GST has posed several challenges for SMEs. The initial implementation phase saw significant compliance burdens, including the need for digital literacy and periodic filings that strained the resources of smaller enterprises. Compliance costs and the complexity of the new tax regime were also major concerns. Additionally, SMEs operating in the unorganized sector faced difficulties adapting to the structured and transparent framework of GST. Overall, while GST has the potential to offer long-term benefits to SMEs by creating a more integrated and efficient market, the immediate impact has been mixed, with many enterprises struggling to adjust to the new system. This study aims to provide a comprehensive analysis of these impacts, drawing insights from various sectors and highlighting the adaptive measures undertaken by SMEs to navigate the GST landscape. The findings underscore the need for continuous support and capacity-building initiatives to help SMEs fully leverage the benefits of GST in India's evolving economic environment.