IMPACT OF GOODS AND SERVICES TAX ON MSMES: A STUDY OF CHALLENGES, OPPORTUNITIES AND ECONOMIC IMPLICATIONS IN DURG DIVISION, CHHATTISGARH

Abstract

An important step towards simplifying India's indirect tax scheme was introduction of Goods and Services Tax. Its effects on several industries, most notably MSMEs (micro, small, and medium-sized enterprises), have sparked heated discussion. The purpose of this research paper is to shed light on difficulties, possibilities, and inclusive consequences of Goods and Services Tax on MSME sector in the Durg Division of Chhattisgarh (C.G.).Combining qualitative and quantitative analysis, the research adopts a mixed-method approach. Business owners, legislators, and industry experts who have an interest MSME are the subjects of organised interviews, surveys, and focus groups that provide the main data. In order to enhance the study, secondary data is also taken from sources such as government papers, academic literature, and industry publications.This study looks at the effects of GST on MSMEs in Durg Division from several angles, such as the financial performance, operational efficiency, compliance burden, and market competitiveness. In addition, it delves into how regulatory frameworks, support systems, and government policies might help MSMEs adjust to the GST system and overcome obstacles.Results from the preliminary analysis of the effects of GST on MSMEs in Durg Division are contradictory. The input tax credit advantages and streamlined tax processes have helped some firms save money and run more efficiently, while the complexity of compliance, the difficulty of adopting new technology, and the interruptions caused by transitions have been problems for others. The study's overarching goal is to shed light on these varied experiences and suggest ways to make the GST more useful in helping MSME expand and weather storms.