Impact of Goods and Service Tax on Financial Performance of MSMEs in Haryana
DOI:
https://doi.org/10.37591/jtrf.v8i1.1673Keywords:
Goods and Service Tax, MSMEs, financial performance, Ratio analysis, and descriptiveAbstract
The study sheds light on how the Goods and Services Tax affects Haryana's small-sector businesses. The primary and secondary methods have been used to collect the data from MSMEs of Haryana for the pre-GST (2015-2017) and post-GST period (2018-2021). The sample size includes 16 Medium enterprises, 22 Small enterprises, and 41 Micro firms. The data has been analyzed through the descriptive type of research. The study found that the average Mean value of ROI for Medium enterprises has been found decreasing from pre-GST Mean (0.17) percent to post-GST Mean (0.16). For Small Enterprises the average Mean value has been found reducing from 0.23 times to 0.15 percent. Micro Enterprises, the average Mean value of ROI has been found decreasing substantially from the pre-GST period 0.14 percent to the post-GST period 0.09 percent. This reflects that MSMEs get lower
income with the same capital base. Therefore, it can be concluded that GST has affected Micro, Small, and Medium enterprises negatively based on profitability. Based on the findings of the study, the Government are advised to adopt various policies to strengthen the MSMEs in Haryana.
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