Impact of GST on Small and Medium Enterprises (SMEs) in Uttar Pradesh: A Study of Compliance Burden and Financial Performance

Abstract

The implementation of the Goods and Services Tax (GST) in 2017 marked a paradigm shift in India’s fiscal landscape. This research investigates the impact of GST on Small and Medium Enterprises (SMEs) in Uttar Pradesh, focusing on the dual dimensions of compliance burden and financial performance. Using a mixed-methods approach, the study analyzes how the transition from a fragmented tax regime to a unified system has influenced operational costs and profitability. Findings suggest that while GST has enhanced transparency and market reach, SMEs in Uttar Pradesh face significant challenges due to digital illiteracy, increased compliance costs, and liquidity constraints