Impact of Goods and Service Tax on Financial Performance of MSMEs in Haryana
DOI:
https://doi.org/10.37591/jtrf.v8i1.1673Abstract
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 micro, small, and medium enterprises of Haryana for the pre-Goods and Services Tax (2015–2017) and post-Goods and Services Tax 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 return on investment for medium enterprises has been found to decrease from pre-Goods and Services Tax mean (0.17) percent to post-Goods and Services Tax mean (0.16). For small enterprises, the average mean value has been found to reduce from 0.23 times to 0.15 percent. For micro enterprises, the average mean value of return on investment has been
found to decrease substantially from the pre-Goods and Services Tax period 0.14 percent to the post-Goods and Services Tax period 0.09 percent. This reflects that micro, small, and medium enterprises get lower income with the same capital base. Therefore, it can be concluded that Goods and Services Tax 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 micro,
small, and medium enterprises in Haryana.
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