Keywords : Indirect Tax system, MSME Entrepreneur, GST Compliance, input tax credit, changes GST rules.

Abstract : The introduction of the Goods and Services Tax (GST) in India aimed to simplify the indirect tax system, enhance transparency, and promote ease of doing business. However, for Micro, Small, and Medium Enterprises (MSMEs), especially in a business-intensive state like Gujarat, the transition to GST has posed several challenges—most notably in terms of compliance and understanding of the new tax regime. This study investigates the level of awareness regarding GST compliance among MSME owners operating in urban regions of Gujarat. Using a structured questionnaire, primary data was collected from 150 MSME entrepreneurs across major cities such as Ahmedabad, Surat, Vadodara, and Rajkot. The analysis reveals that while most MSME owners are aware of the basic requirements like GST registration and return filing, many lack detailed knowledge about input tax credit, e-invoicing, and compliance deadlines. The study also finds a strong correlation between awareness levels and compliance behaviour, indicating that limited knowledge often leads to unintentional non-compliance. Key barriers identified include complex filing procedures, frequent changes in GST rules, and dependence on third-party consultants. The paper concludes with suggestions for targeted awareness campaigns, simplified compliance systems, and training programs to enhance GST literacy among MSMEs. These recommendations aim to bridge the knowledge gap and ensure better tax compliance in the MSME sector.

Download