Impact Of GST On Compliance Requirements Of Msmes

Abstract

Micro, Small and Medium Enterprises (MSMEs) plays a vital in the economic progress of India, the implementation of Goods and Services Tax (GST) has had an immense impact on their functioning in the market. Some enterprises found it helpful, however, majority felt problems in adopting it. For existing enterprises, GST simplified the tax structure, unified the market thereby improving operational efficiencies of MSMEs. In the earlier regime, the unorganized MSMEs were growing faster than the organized ones, as they were having lower compliance burdens With GST in effect, it has made the taxation system transparent thus bringing all entities at par, with reference to tax compliance burden. This paper assesses issues and compliance challenges experienced by MSMEs in the GST regime.