Comparative Analysis of MSME Growth and Financial Efficiency Post-GST Implementation

Abstract

This study investigates the impact of the Goods and Services Tax (GST) on the growth and performance of Micro, Small, and Medium Enterprises (MSMEs) in India, following its implementation on July 1, 2017. By employing a comparative analysis approach, the research examines key performance indicators such as revenue growth, profitability, compliance costs, and market access before and after GST implementation. The findings reveal that while GST has streamlined the tax structure and improved market access for many MSMEs, it has also posed significant challenges, including increased compliance burdens and a steep learning curve for adaptation. The study highlights the varied responses of MSMEs to GST, identifying both success stories and areas of struggle. Ultimately, this research contributes to a deeper understanding of the transformative effects of GST on MSMEs, offering valuable insights for policymakers and stakeholders aiming to enhance the sector's resilience and growth in a post-GST landscape.