A STUDY IMPACT OF GST ON EASE OF DOING BUSINESS FOR MSMEs AND START-UPS IN INDIA

ABSTRACTThe introduction of the Goods and Services Tax (GST) in 2017 marked a landmark reform in India’s indirecttaxation system. The reform aimed to create a unified national market by replacing multiple indirect taxes with asingle comprehensive tax structure. Micro, Small and Medium Enterprises (MSMEs) and start-ups play a crucialrole in India’s economic development by contributing significantly to GDP, employment generation, exports, andinnovation. This paper examines the impact of GST on the ease of doing business for MSMEs and start-ups inIndia. The study adopts a descriptive research design based on secondary data collected from government reports,research articles, and policy documents. The paper analyses the benefits of GST such as elimination of cascadingtaxes, availability of input tax credit, improved transparency, and digital compliance. At the same time, ithighlights the challenges faced by MSMEs including compliance burden, technological barriers, frequent returnfiling, and working capital issues. The findings suggest that although the initial implementation createdoperational difficulties for small businesses, gradual reforms and digital improvements have enhancedtransparency and interstate trade efficiency. The study concludes that GST has positively contributed to improvingease of doing business in India, though further simplification and supportive measures are necessary to strengthenthe MSME and start-up ecosystem