The Impact of GST on Small and Medium Enterprises (SMEs)

The introduction of the Goods and Services Tax (GST) has transformed the indirect taxation system in India with a unified approach to taxation for businesses. Small and Medium Enterprises (SMEs) contribute to nearly 50% of industrial output and 42% of total exports, and have faced both opportunities and challenges under the GST tax regime. Let us break down the impact of GST on SMEs, and understand the benefits and challenges associated with the GST system.