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Abstract :
The Goods and Services Tax refers to an attempt to streamline the indirect tax regime in India under the slogan - "One Nation, One Tax". The Micro, Small and Medium Enterprises (MSME) sector is an instrumental aspect of the Indian economy for employment generation and innovative performance. This paper assesses the influence of GST rate reductions on the performance of MSMEs using information from government publications, GST council publications, RBI bulletins and MSME publications from 2017 to 2025. The analysis reveals that GST rate reductions have positively influenced MSME profitability, improved cash flow, and enhanced MSME performance and competitiveness in market transactions. Notwithstanding these improvements, non-compliant issues and the challenges of low digital literacy and digital commerce are impeding overall MSME competitiveness and performance improvements. We recommend a sustained policy commitment to support MSME commitments to GST reforms, including more digital tools and implementation efforts.
"Impact of GST Rate Deduction on MSMEs", International Journal for Research Trends and Innovation (www.ijrti.org), ISSN:2455-2631, Vol.10, Issue 11, page no.b219-b225, November-2025, Available :http://www.ijrti.org/papers/IJRTI2511129.pdf
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2456-3315 | IMPACT FACTOR: 8.14 Calculated By Google Scholar| ESTD YEAR: 2016
An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 8.14 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator