“A Study on the Impact of GST Implementation on MSMEs in Haryana”

Abstract

The implementation of the Goods and Services Tax (GST) in India marked a significant transformation in the indirect taxation system, aiming to create a unified market and simplify tax compliance. This study examines the impact of GST implementation on Micro, Small, and Medium Enterprises (MSMEs) in Haryana from stakeholder perspectives. Adopting an exploratory cum descriptive research design, primary data were collected from 100 respondents, including MSME owners, managers, and accountants, using a structured questionnaire. The study employs descriptive statistics and multiple regression analysis to evaluate the influence of demographic and enterprise-related factors on GST impact. The findings reveal that GST has had a mixed impact on MSMEs. While it has enhanced transparency, formalization, and tax structure efficiency, it has also increased compliance burden, administrative complexity, and operational challenges for many enterprises. Regression results indicate that variables such as age, education, MSME type, years in operation, and annual turnover significantly influence perceptions of GST impact, whereas gender, nature of business, and location are not statistically significant. The study concludes that although GST is a progressive reform, its effectiveness depends on MSMEs’ adaptability and the availability of institutional support. The research provides valuable insights for policymakers to improve GST implementation and strengthen MSME performance.