Assessment of the Implications of GST (Goods and Services Tax) Rollout on Indian MSMEs

The purpose of this study is to understand the implications of the recent rollout (July 2017) of GST (Goods and Services Tax) in India on the MSME (Micro, Small, and Medium Enterprises) sector. The study comprises a series of qualitative face-to-face interviews which were followed up by a survey with Indian MSME owners. The study provides a multi-dimensional understanding of the gaps between the effect of the anticipated and existing GST regime for the MSMEs and the associated tax compliance. It identifies and assesses the inter-jurisdictional and other issues that are involved in GST implementation. There is scope to probe the means to enable the effective deployment of GST based on the findings of this study. The findings can also be used to develop guidelines for suitable implementation of the GST regime for the MSMEs operating in different sectors.