A Deep Study of the Impact of Goods and Service Tax (GST) on Small Scale Business with New Tax Rates
Year: 2026
Type: article
Abstract: The Goods and Service Tax (GST) introduced in India on 1st July 2017, represented one of the most significant indirect tax reforms in the nation’s history. It aimed to replace multiple indirect taxes with a single unified tax structure, simplifying compliance and fostering a common national market. While the reform presented the opportunities such as elimination of cascading taxes, Input Tax Credit (ITC) benefits, and enhanced interstate commerce, its full impact particularly on small scale businesses- remain mixed. This paper explores the effects of GST on micro, small and medium enterprises (MSMEs) with emphasis on the latest GST rate reforms introduced from September 2025 onwards, which rationalized GST slabs into simpler tiers (primarily 0%, 5%,18% and special 40% for luxury goods.) aiming to further ease compliance and tax burdens.
Author: Dr. Amardeep Bajpai
Language: English
Topic: Economic and Fiscal Studies
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W7203677523