Open Access Research Article
THE ROLE OF THE GOODS AND SERVICES TAX (GST) IN SHAPING SMALL AND MEDIUM ENTERPRISES (SMES) AND RURAL ENTREPRENEURSHIP
Abstract
Abstract
The implementation of the Goods and
Services Tax (GST) stands as one of the most significant structural economic
reforms in modern fiscal history, fundamentally redefining indirect taxation by
replacing a fragmented cascading system with a unified, destination-based tax
architecture. This descriptive research paper examines the dual impact of GST
on Small and Medium Enterprises (SMEs) and rural entrepreneurship. Utilizing a
comprehensive review of secondary policy data, economic literature, and
institutional reports, the study analyzes how the transition to a formalized
tax framework has altered operational realities. The findings indicate that
while GST has successfully eliminated tax cascading, expanded geographical
market access through streamlined logistics, and improved long-term
institutional credit eligibility via formalization, it has simultaneously
introduced severe short-term friction points. These vulnerabilities include
disproportionate compliance costs, acute working capital compression driven by
automated Input Tax Credit (ITC) locks, and systemic digital exclusion among
rural enterprises lacking technological literacy and infrastructure.
Ultimately, the paper provides strategic policy recommendations aimed at
bridging the digital-rural divide and simplifying compliance architectures to
sustain grassroots economic growth.
Published Paper
Author Details
Authors: RIYA SINHA
Registration ID: 1013182 | Published Paper ID: IJLRA13182
Year: Sep-2026 | Volume: 3 | Issue: 6
Approved ISSN: 2582-6433 | Country: Delhi, India
Page No.: 1046-1055
Article Information
THE ROLE OF THE GOODS AND SERVICES TAX (GST) IN SHAPING SMALL AND MEDIUM ENTERPRISES (SMES) AND RURAL ENTREPRENEURSHIP
Authors: RIYA SINHA
- Journal IJLRA
- ISSN 2582-6433
- Volume 3
- Issue 6
About Journal
International Journal for Legal Research and Analysis
- AbbreviationIJLRA
- ISSN2582-6433
- AccessOpen Access
- LicenseCC 4.0
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