Impact of goods and service tax (GST) on MSMEs in India

Abstract

The Micro, Small and Medium Enterprises (MSMEs) sector has been deliberated as the chief development driver of the Indian economy for the year(Sunil Mitra 2018). India is a predictable to appear as one of the important economies in the world over the next decade in the light of a positive political and economic scenario (Mc Kinsey 2017).The Micro, Small and Medium Enterprises (MSMEs) fragment is expected to play a significant role in the appearance of the Indian Economy. The development of this part is very decisive to meet the national imperatives of financial inclusion and generation of significant levels of employment across urban and rural areas of the country (Annual Report 2017-18). Micro, Small and Medium Enterprises (MSMEs) can be the backbone for obtainable and future of high growth business with both domestic and foreign companies. The present paper will focus on existing scenario and trends of MSMEs in India (ShriMadavLal 2015). There is equally important that the Micro, Small and Medium Enterprises (MSMEs) sector develops in all areas of agriculture, manufacturing and services sectors because each of these sectors will continue to be very relevant to the GDP growth as well as employment generation (ShriR.S.Gujral 2017). The Micro, Small and Medium Enterprises (MSMEs) sectors will act as a mechanism to bring about this socio-economic renovation. An attempt has been made in this study to find the sector wise contribution to GDP after Implementation of Goods and Services Tax (GST).