Bridging the Digital Divide: Challenges of GST Technology Adoption among MSMEs in Telangana

The implementation of the Goods and Services Tax (GST) in India marked a significant reform in the country’s indirect taxation system, aiming to streamline compliance and enhance transparency. However, small traders continue to face considerable challenges in adopting GST-related digital technologies. Limited digital literacy, inadequate infrastructure, and financial constraints have widened the digital divide, creating barriers to effective compliance. This paper explores the socio-economic and technological hurdles encountered by small traders, highlighting issues such as lack of awareness, dependence on intermediaries, and resistance to technological change. By analyzing these challenges, the study underscores the need for targeted policy interventions, capacity-building programs, and accessible digital tools to ensure inclusive participation in the GST regime. Bridging this divide is crucial not only for compliance but also for empowering small traders to thrive in an increasingly digital economy.