An Empirical Assessment of GST Implementation on Small Business Operations in India: Operational Dynamics, Compliance Costs, and Systemic Perceptions

The Goods and Services Tax (GST), introduced in India on July 1, 2017, represents a historic consolidation of the country's indirect tax framework. Small enterprises—a fundamental pillar of national economic growth—faced structural disruptions during this transition. This study evaluates the empirical impact of GST on small businesses using a descriptive and analytical research methodology. Primary data were gathered via a structured instrument administered to N=100 small business operators across urban and semi-urban hubs. The data were evaluated using percentage distributions and non-parametric Chi-Square tests of independence. Results indicate that while 96% of respondents acknowledge systemic simplification and 80% express overall regime satisfaction, significant operational frictions persist: 84% report elevated operational costs, 82% rely on third-party accounting professionals for compliance, and 84% experience recurrent portal-related technical bottlenecks. Strategic recommendations focus on compliance architecture simplification, technological upgrades to the core network, and localized capacity-building initiatives.