CHALLENGES AND OPPORTUNITIES OF GST FOR TEXTILE MSMES IN MADHYA PRADESH

Abstract

The Goods and Services Tax (GST), introduced in India on July 1, 2017, marked a significant reform in the country's indirect taxation system. The textile industry, one of the largest contributors to employment and industrial production in India, has experienced substantial changes due to GST implementation. Textile Micro, Small, and Medium Enterprises (MSMEs) in Madhya Pradesh have faced various challenges related to tax compliance, working capital management, technological adaptation, and documentation requirements. Simultaneously, GST has created opportunities by establishing a unified national market, reducing cascading taxation, enhancing transparency, and improving interstate trade. The present study examines the challenges and opportunities arising from GST implementation for textile MSMEs in Madhya Pradesh. The research is based on primary data collected from 150 textile MSME owners and managers through a structured questionnaire. Descriptive and inferential statistical techniques are proposed to analyze the data. The study aims to assess the major challenges encountered by textile MSMEs under GST and to evaluate the opportunities created by the new tax regime. The findings are expected to contribute to policy formulation and provide insights for improving GST compliance and business performance in the textile sector.