Vol. 7, Issue 1, Part A (2025)

India implemented the Goods and Services Tax (GST) to simplify the intricate system of indirect taxes and enhance economic productivity. GST is a unified tax levied on the entire process of producing and delivering goods and services, from the manufacturer to the end consumer. GST simplifies the whole procedure of submitting and paying taxes. This study assesses the impact of GST implementation on micro, small, and medium-sized firms (MSMEs) in India. It examines changes in tax legislation, compliance procedures, and technology adoption in a country known for its diverse economy and cultural heritage. The study uses only secondary data from various sources, including websites, journals, newspaper stories, and statutory reports. The Indian economy’s most dynamic and lively segment is MSMEs. MSMEs also provide a significant number of job possibilities and substantial contributions to the output of the economy. By uniting the Indian market and enabling MSMEs to compete with global and multi-state businesses, GST promotes competition between them. Under the GST regime, the industry has seen a range of results. GST has been a critical step in improving transparency and promoting economic growth, particularly for the MSME sector. Even though GST has many benefits, there are certain issues that MSMEs face, such as multiple registrations, complicated processes, transfers of tax duty, etc.