Impact of the Goods and Services Tax (GST) on Small Traders

Abstract

: The introduction of the Goods and Services Tax (GST) in India on July 1, 2017, represented a significant overhaul of the country’s tax system, aiming to unify the previous complex structure into a single, comprehensive framework. This reform sought to simplify tax administration, enhance compliance, and eliminate the cascading effect of taxes. For small traders, who form a crucial segment of the economy, the impact of GST has been profound and multifaceted. The findings highlight that effective adaptation to GST can lead to enhanced financial performance and operational efficiency. However, the complexities of compliance and the need for technological investment remain significant hurdles. The paper concludes that while GST has the potential to drive operational improvements, there is a need for continued support measures to assist small traders in navigating the new tax regime and to address the challenges faced in compliance and operational adaptation. The results contribute to a better understanding of GST’s impact on small businesses and provide insights for policymakers to refine support mechanisms and improve the effectiveness of the tax reform..