GST REFORMS AND DIGITAL TRANSFORMATION AMONG MSME ENTREPRENEURS

Abstract

The introduction of the Goods and Services Tax (GST) in India was a ground changing event in the Indian indirect taxation system. In the case of the Micro, Small, and Medium Enterprises (MSMEs), GST not only reorganized the tax compliance but also increased the rate of digital transformation. This article discusses how GST reforms, together with digitalization, affect MSME entrepreneurs, along with the prospects and difficulties, along with their long-term consequences. It discusses how digitization brought about by GSTs has enhanced transparency, formalization, credit access, and operational efficiency as well as finding barriers to digitization which include compliance burden and digital divides. The article is a conclusion that GST reforms have served as a catalyst to the digital transformation that has contributed to a competitive and inclusive MSME ecosystem.