Impact of Goods and service Tax (GST) in Micro- Small- Medium Scale Enterprises

Abstract

India's production, distribution, and consumption of products and services are all subject to the Goods and Services Tax (GST). Its goal is to do rid of the flaws in the tax code that cause tax avoidance and cascading taxes. GST is a consumption tax that is based on the place of consumption; therefore, the tax is paid at the location of supply. All goods and services, from producer to supplier, are subject to a single tax. GST is independently imposed by the federal and state governments, and it is assessed at the same rates on comparable commodities at both the federal and state levels. GST is independently imposed by the federal and state governments, and it is assessed at the same rates on comparable commodities at both the federal and state levels. GST would replace all indirect taxes imposed on goods and services by the Central and State governments, and it is a crucial step towards a comprehensive indirect tax reform in India. Everyone is required to pay tax on their output, and they are eligible for an input tax credit (ITC) for the tax paid on their inputs. However, the final customer is ultimately responsible for paying the tax. For the States to levy a carrier tax, an import duty, and other penalties, as well as for the Centre to tax the sale of products, constitutional amendments are necessary.