NAVIGATING THE GST TERRAIN: IMPACT ON MSMES AND PATHWAYS TO MITIGATION
NAVIGATING THE GST TERRAIN: IMPACT ON MSMES AND PATHWAYS TO MITIGATION Rakshak Tyagi, 3rd year BA LLB student at Army, Institute of Law, Mohali Alok Kumar, 3rd year BA LLB student at Army, Institute of Law, Mohali Download Manuscript ABSTRACT The Goods and Services Tax (GST) Act of 2017 aimed to revolutionize trade by consolidating 17 diverse taxes into a cohesive system with four tax slabs, marking a significant shift in India’s indirect tax regime. However, its journey witnessed nearly 2000 amendments in seven years, prompting concerns about stability and effectiveness. Challenges persist for Micro, Small, and Medium Enterprises (MSMEs), notably in GST registration, compliance burdens, and selection dilemmas between composition and regular tax regimes. These challenges exacerbate operational inefficiencies, particularly affecting small-scale businesses. Additionally, the lack of clarity in tax regulations and the reverse charge mechanism add to the burden, hindering business operations. Addressing these challenges requires simplifying the composition scheme, extending Input Tax Credit (ITC) benefits, and streamlining processes to foster smoother business operations under the GST regime. Efforts to enhance government systems can prevent minor mistakes from disrupting entities’ core operations. This paper provides valuable insights into the challenges faced by MSMEs under the GST regime and proposes solutions to alleviate their impact, making it essential reading for policymakers, business owners, and researchers seeking to understand and address the implications of GST implementation in India. The comprehensive analysis offered in this study serves as a roadmap for navigating the complexities of GST for MSMEs and underscores the importance of policy interventions urging policymakers to simplify GST compliance for MSMEs and offers researchers a framework to assess policy effectiveness, fostering informed decisions and further study. Type Information Research Paper LawFoyer International Journal of Doctrinal Legal Research, Volume II, Issue II, Page 455-462. Creative Commons Copyright This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. Copyright © LIJDLR 2024
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