📄 Abstract
Micro, Small, and Medium Enterprises (MSMEs) are a vital component of the Indian economy, contributing significantly to employment generation, industrial production, exports, and inclusive economic growth. The implementation of the Goods and Services Tax (GST) on 1 July 2017 marked a major reform in India's indirect tax system, replacing multiple central and state taxes with a unified tax structure. GST was introduced to simplify tax administration, promote transparency, reduce tax cascading, and create a common national market. While the reform has provided several advantages, such as improved input tax credit mechanisms, easier interstate trade, and greater formalization of businesses, it has also posed challenges for MSMEs in terms of compliance costs, digital adaptation, working capital management, and frequent regulatory changes. This study assesses the effect of GST on the competitiveness and sustainability of MSMEs in India. It examines how GST has influenced business efficiency, market competitiveness, financial performance, operational continuity, and long-term growth prospects of MSMEs. The study also identifies the key challenges encountered by MSMEs under the GST regime and explores measures to enhance their resilience and competitiveness. The findings are expected to provide valuable insights for policymakers, researchers, and MSME stakeholders in developing strategies that support sustainable growth while maximizing the benefits of GST reforms.
🏷️ Keywords
📚 How to Cite:
Dr. S.Kokilavizhi , ASSESSING THE EFFECT OF GOODS AND SERVICES TAX (GST) ON THE COMPETITIVENESS AND SUSTAINABILITY OF MSMEs IN INDIA , Volume 12 , Issue 7, July 2026, EPRA International Journal of Multidisciplinary Research (IJMR) , Pages: 184 - 186 , DOI: https://doi.org/10.36713/epra28635