Understanding the effects of indirect taxes on small businesses in the GST Era

The Goods and Services Tax (GST), including other indirect taxes, can have a major effect on small and medium-sized enterprises. In this paper, the effect of GST on the financial outcomes of Micro, Small, and Medium-Sized Companies (MSMEs) is examined. The standardized form is being utilized to collect data from 400 registered MSMEs. The factors that influence GST such as technological advancements, tax awareness and knowledge, and systemic changes have improved the business environment, operational effectiveness, profitability, and efficient restriction of funds. We provide statistical analysis and hypothesis development for the Impact of indirect taxes on Small Businesses with GST and evaluating the impact of GST on MSMEs' operational performance using partial least squares equation modeling (PLS-SEM). Findings can assist regulators and other emerging economies focused on tax reduction factors that improve performance and promote higher economic growth with an outcome of MSMEs' improved performance.