Loading article...
Loading article...
Stream/Area:
-
Subject:
-
Paper ID:
10.55041/IJSREM.GSTCOS033
Volume:
10 |
7 |
Jul 2026
Pages:
1-11
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
Research Scholar
Malla Reddy Deemed to be University
Research Scholar
Telangana University
The introduction of the Goods and Services Tax (GST) on 1 July 2017 marked a major transformation in India’s indirect tax system. The reform replaced multiple indirect taxes with a unified tax structure aimed at improving tax efficiency, reducing cascading effects, and creating a common national market. Micro, Small, and Medium Enterprises (MSMEs) and small traders form the backbone of the Indian economy and contribute significantly to employment generation, industrial output, and regional development. Telangana, being one of the rapidly developing states in India, has a substantial MSME base that has experienced both opportunities and challenges following GST implementation. This study examines the impact of GST on MSMEs and small traders in Telangana with particular focus on compliance challenges, cost implications, market integration, competitiveness, and access to formal finance. The study is based on secondary data collected from government reports, academic journals, GST Council publications, RBI reports, and MSME databases. The findings reveal that GST has improved transparency, enhanced market accessibility, and increased formalization of businesses. However, compliance complexities, technological requirements, and working capital constraints continue to affect small enterprises. The study concludes that policy support, simplified compliance mechanisms, and digital literacy initiatives are necessary to maximize the benefits of GST for MSMEs and small traders in Telangana.
KEYWORDS
The Goods and Services Tax represents one of the most significant economic reforms undertaken in India. For MSMEs and small traders in Telangana, GST has created both opportunities and challenges. The reform has successfully improved transparency, reduced tax cascading, enhanced interstate trade, and promoted business formalization. The study finds that GST has strengthened market integration and increased access to formal finance by creating reliable digital records and improving financial transparency. At the same time, compliance requirements, technological adaptation, and administrative costs continue to pose challenges for many small enterprises. The long-term success of GST depends on the ability of policymakers to simplify compliance procedures, strengthen digital infrastructure, and provide targeted support to MSMEs. Continuous improvements in GST administration and business support mechanisms will enable MSMEs and small traders in Telangana to fully realize the benefits of this transformative tax reform. As Telangana continues its journey toward industrial and economic development, GST can serve as an important catalyst for enhancing competitiveness, encouraging entrepreneurship, and promoting sustainable economic growth.
1. Ahuja, G. (2020). GST and Small Business Growth in India. New Delhi: Taxmann Publications. 2. Bansal, R., & Verma, P. (2021). GST and financial inclusion of MSMEs in India. International Journal of Finance and Economics, 8(2), 45–58. 3. CBIC. (2021). Annual Report 2020–21. Government of India. 4. Das, S. (2022). Impact of GST on Indian MSMEs. Journal of Business Research, 15(3), 120–135. 5. Government of India. (2023). Economic Survey 2022–23. Ministry of Finance. 6. Government of Telangana. (2023). Telangana Industrial Development Report. 7. Gupta, M. (2021). Tax reforms and economic development in India. Indian Economic Review, 12(4), 88–101. 8. Jain, R. (2019). GST compliance challenges for SMEs. International Journal of Taxation Studies, 5(1), 34–47. 9. Karthik, S., & Reddy, V. (2022). GST impact on Telangana industries. South Indian Journal of Commerce, 10(2), 65–79. 10. Kumar, A., & Singh, R. (2019). GST and small business adaptation. Journal of Entrepreneurship and Development, 7(3), 91–105.
Publication Date
7/4/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
Documents
Article Views
2
Total views since publication
PDF Downloads
3
Total downloads since publication
Geographic Reach
5
Digital Preservation: This article is permanently archived on Zenodo and complies with all data preservation standards across major indexing platforms.
Plagiarism Screening
This manuscript has been checked for plagiarism using TurnitinPlagiarismChecker software.
Conflict of Interest
The authors declare no conflict of interest related to this research work.
Funding Information
No funding information available for this research.
Related research in the same subject area
Loading similar articles...