A Study on GST Compliance Challenges Faced by Small Businesses and the Role of Digital Solutions in India.

 Abstract:

The Goods and Services Tax (GST) is a watershed moment in India's indirect tax system, aimed at creating a unified tax structure, increasing transparency, and improving economic efficiency. Notwithstanding its stated advantages, small businesses and small and medium-sized enterprises (SMEs), which are a vital component of the Indian economy, now face severe compliance issues as a result of the GST. This study looks at the type and scope of small business GST compliance issues and assesses how well digital solutions can help with these issues.

The study's foundation is secondary data gathered from trade journals, academic literature, government publications, policy studies, and industry surveys. It examines how GST affects supply chain operations, price choices, working capital management, compliance expenses, return filing procedures, and general corporate competitiveness. The results show that even though GST has made interstate commerce easier and tax administration more transparent, small businesses still face challenges with limited cash flow, frequent regulatory changes, complicated return filing requirements, low levels of digital literacy, and growing compliance costs.

The study also emphasizes how digital solutions including cloud-based tax platforms, e-invoicing platforms, mobile compliance apps, and GST-enabled accounting software may improve reporting accuracy, save time, and reduce errors. However, due to financial concerns, a lack of training, and infrastructure constraints, the adoption of such digital solutions is still unequal. In order to improve the effectiveness of GST compliance and encourage sustainable growth among Indian small enterprises, the study ends by suggesting governmental interventions centered on digital capacity building, streamlined compliance procedures, and reasonably priced technology assistance.