A Comparative Study on the Tax Burden Faced by Small and Medium Enterprises in India Before and After the Implementation of GST

Paper ID: EIJTEM_2022_9_4_101-106

Author's Name: RAJANNA K

Volume: 9

Issue: 4

Year: 2022

Page No: 101-106

Abstract:

This study explores the preparedness and adaptability of Small and Medium Enterprises (SMEs) in India in response to the implementation of the Goods and Services Tax (GST). While GST aimed to unify the indirect tax structure and promote ease of doing business, its introduction demanded significant changes in the way SMEs manage their accounts, file returns, and adopt digital tools. The research investigates the extent to which SMEs were equipped to transition to the GST framework, with emphasis on technology adoption, staff training, and access to professional support. Data was gathered through structured questionnaires from SME stakeholders across sectors, supplemented by secondary data. The findings reveal that many SMEs initially struggled to adapt due to a lack of digital infrastructure, limited awareness, and dependence on external consultants. Despite these challenges, a gradual improvement in compliance behavior and awareness was observed. The study suggests that more targeted training, simplified processes, and support schemes are essential for effective GST integration within the SME ecosystem.

Keywords: Goods and Services Tax, Small and Medium Enterprises, Compliance, Digital Adaptation, Tax Reform, Technology Adoption, Business Preparedness, Professional Support

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