The introduction of the Goods and Services Tax (GST) in India has brought significant changes to the country’s taxation system by replacing multiple indirect taxes with a unified tax structure. This study examines the impact of GST on small businesses and analyzes how the new tax regime has influenced their operations, profitability, compliance procedures, and overall business performance. The research focuses on understanding both the positive and negative effects of GST on small enterprises, including changes in tax compliance, digital record-keeping, pricing strategies, and market competitiveness.

The study is based on both primary and secondary data. Primary data has been collected through questionnaires and surveys conducted among small business owners, while secondary data has been gathered from research journals, government reports, articles, and online sources. The findings indicate that GST has improved transparency and reduced the cascading effect of taxes; however, many small businesses continue to face challenges related to technical compliance, increased documentation, and lack of awareness regarding GST procedures. The research further highlights that digitalization and simplified tax systems have encouraged better business practices and improved tax administration in the long run.

The study concludes that although GST has created initial difficulties for small businesses, it has also provided opportunities for growth, formalization, and expansion in the organized market. Proper training, awareness programs, and simplified compliance procedures can help small businesses adapt more effectively to the GST framework and achieve sustainable development.