Challenges and Opportunities: Assessing the Impact of GST on MSMEs and the Need for Ongoing Support

The implementation of the Goods and Services Tax (GST) has presented both opportunities and challenges for Micro, Small, and Medium Enterprises (MSMEs). While a portionof individuals (31.4%) who received training from government and third-party sources managed to comprehend and adhereto GST requirements, they encountered significant difficulties, particularly in the registration process (43.1%), return filing fees (46.1%), and payment procedures (32.4%). Despite efforts, a majority of MSME owners (56.9%) reported adverse effects on their sales and revenue, underscoring the challenges businesses face in adjusting to the new tax system.Furthermore, a considerable percentage (36.3%) experienced a decline in profits, indicating the financial impact of GST adoption on MSMEs. Notably, a mere 2.9% reported increased profits, highlighting that only a few businesses capitalized onthe potential benefits of GST. These findings underscore the persistent need for ongoing support, guidance, and simplification of compliance requirements for MSME owners. The difficulties faced by MSMEs, coupled with the negative impacts on sales, income, and profitability, emphasize the importance of continuous efforts to streamline processes, provide comprehensive training, and help. Policymakers and stakeholders play a crucial role in mitigating the adverse effects on businesses, fostering a more conducive environment for the growth and sustainability of MSMEs through targeted interventions and support mechanisms in adapting to the GST system.