Impact of GST on MSMES in India with Special Reference to Coimbatore City

The Goods and Services Tax (GST), introduced in India on 1 July 2017, represents a landmark reform in the indirect tax structure aimed at creating a unified national market and simplifying the taxation system. Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in the Indian economy by contributing significantly to GDP, exports, and employment generation. However, the implementation of GST has brought both opportunities and challenges for MSMEs. This study examines the impact of GST on MSMEs in India with special reference to Coimbatore city, a major industrial hub in Tamil Nadu. The research focuses on the awareness, compliance burden, operational efficiency, and financial impact of GST on MSMEs. Primary data were collected from 141 MSME entrepreneurs through a structured questionnaire. Statistical tools such as percentile analysis, Chi-square test, and Analysis of Variance (ANOVA) were used to analyze the data. The findings reveal that GST has improved tax transparency and facilitated interstate trade but has also increased compliance requirements and digital reporting obligations for small enterprises. Many MSMEs initially faced challenges in adapting to online filing systems and understanding GST procedures. However, over time, businesses have begun to recognize benefits such as input tax credit and reduced tax cascading. The study concludes with policy recommendations to simplify compliance and strengthen MSME adaptability to GST.