“Assessing the Impact of GST on Import Practices of MSMEs in Haryana: Stakeholder Perspectives”

Abstract

The Goods and Services Tax (GST), introduced in India in 2017, was designed to simplify the indirect tax structure, promote transparency, and enhance ease of doing business. For Micro, Small, and Medium Enterprises (MSMEs), which form the backbone of Haryana’s industrial and agro-based economy, GST significantly influences import practices. This study examines stakeholder perspectives on the operational and financial implications of GST for import-dependent MSMEs. Primary data were collected from 100 respondents, including owners, managers, and accountants, through a structured questionnaire. Using descriptive statistics and regression analysis, the study identifies key challenges such as increased import costs, delays in clearance, compliance complexity, and difficulties in claiming input tax credits. Findings reveal that GST has raised the cost of imported raw materials and reduced competitiveness, with compliance burden emerging as the most significant factor affecting import practices. COVID-19 further compounded these challenges by disrupting supply chains and causing delays in import access. Although government interventions provided moderate relief, stakeholders highlighted the need for simplified compliance procedures, digital infrastructure support, and sector-specific guidance. The study concludes that while GST has potential to streamline taxation and enhance transparency, its practical effectiveness depends on MSMEs’ preparedness, awareness, and technological capacity.