Effect of Goods and Service Tax System on Business Performance of Micro, Small and Medium Enterprises

Tax and economy go hand in hand, whenever any overhaul tax structure takes place, it becomes essential to evaluate its effect on sector concerned businesses. The present study examines the of Goods Service (GST) Indian Micro, Small Medium Enterprises (MSMEs) business performance. Data were collected through a structured questionnaire from 404 registered MSMEs. partial least square equation modeling results emphasized an overall positive impact GST path model demonstrated that determinants GST- change system, technology transition, awareness knowledge have enhanced performance terms ease doing business, operational efficiency, increased profitability reduced working capital blockage funds. However, contrast, compliance system has burden firms, which harmed their Further, examined MSMEs’ size, turnover, form enterprises. may benefit policymakers other emerging economies focusing reform factors enhance leading better economic growth future with support JEL Code: H20; M10; O33; C30