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Research Paper | Commerce and Economic Studies | Volume 15 Issue 3, March 2026 | Pages: 1226 - 1229 | India
Perception and Impact of Goods and Services Tax on Micro, Small and Medium Enterprises in Karnataka
Abstract: India as fiscal landscape underwent a transformative reform with the introduction of the Goods and Services Tax (GST) on 1 July 2017, replacing a complex, multi-layered indirect tax structure. GST was envisioned as a unifying mechanism to dismantle economic barriers across states and integrate India into a single, cohesive national market. Karnataka, one of India?s leading industrial and entrepreneurial states, is home to a dynamic MSME sector that plays a pivotal role in employment generation, export diversification, and regional economic growth. The present study examines the perception, awareness, acceptance, and impact of GST on Micro, Small, and Medium Enterprises (MSMEs) in Karnataka, with a focus on enterprises located in Bengaluru, Mysuru, Belagavi, Hubli-Dharwad, and Mangaluru. A structured questionnaire-based survey was administered to 150 MSME owner-managers. Descriptive statistics, Chi-Square tests, and Pearson correlation analysis were employed to evaluate the hypotheses. The findings reveal a statistically significant association between the category of enterprise and its perception of GST legislation. The study further establishes that higher GST awareness correlates positively with satisfaction levels. While MSMEs broadly accept GST as a progressive reform, compliance burden and technological challenges remain significant concerns. The study contributes to the growing body of literature on tax reform and MSME development, offering actionable policy implications for regulators and business support agencies in Karnataka.
Keywords: Goods and Services Tax (GST), MSME Sector, Karnataka, Perception, Awareness, Tax Compliance, Indirect Tax Reform
How to Cite?: Dr. M. N. Prakasha, "Perception and Impact of Goods and Services Tax on Micro, Small and Medium Enterprises in Karnataka", Volume 15 Issue 3, March 2026, International Journal of Science and Research (IJSR), Pages: 1226-1229, https://www.ijsr.net/getabstract.php?paperid=SR26319142956, DOI: https://dx.dx.doi.org/10.21275/SR26319142956