This study investigates the impact of Goods and Services Tax (GST) compliance on the growth performance of Micro, Small and Medium Enterprises (MSMEs) in Hyderabad. MSMEs are vital contributors to employment generation and regional economic development; however, the implementation of GST has significantly altered their tax compliance environment. The research examines how GST compliance influences MSME growth indicators such as sales expansion, profitability, and competitive positioning. Primary data were collected from GST-registered MSMEs in Hyderabad and analyzed using Structural Equation Modelling–Partial Least Squares (SEM-PLS). The findings reveal a significant positive relationship between GST compliance and perceived MSME growth performance. While improved compliance enhances transparency and formalization, procedural complexities and compliance burdens may limit growth benefits for smaller enterprises. The study offers policy implications for simplifying compliance processes and strengthening institutional support to promote sustainable MSME growth under the GST regime.
K VENU (Wed,) studied this question.