The Impact of Goods and Services Tax on Micro Small and Medium Enterprises in Kanchipuram District of Tamilnadu

Abstract

Micro small and medium enterprises in Tamil Nadu holds 3rd place in the nation with 15 million of enterprises. MSME of the state contributes GDP of 29% to the nation. Through MSME the employment opportunity, foreign exchange, export and import enhancement. In Kanchipuram district consist of four taluk and in those areas, there are sectors like silk weaving, cotton mill, rice mills, pharmaceutical and etc. GST was implemented on 2017 by India to make one nation one tax system and to avoid indirect taxes such as Value Added Tax, Service Tax and so on. Indian Tax slabs starts with 0% to 28% in that 81% of products holds of above 18% and 19% of products holds below 18%. By MSME was the sector which was most affected sector. Government of India took advance steps to exclude impacts created by the implementation of Goods and Services Tax newline