GOODS AND SERVICES TAX AND ITS IMPACT ON ELECTRONICS SECTOR MSMES IN NORTH DELHI: A MICRO LEVEL STUDY

The research study investigates how the Goods and Services Tax impacts the Micro Small and Medium Enterprises that operate in the electronics sector of North Delhi which produces various industry effects. The unified tax system enables business operations through better documentation procedures and supply chain management systems but requires businesses to spend additional funds while following extra regulations which impose difficulties on their smaller operations. Enterprises experienced reduced profitability because they failed to pass their increased expenses onto their customers. Businesses need more working capital because they face delays in receiving input tax credits while they must pay taxes upfront which creates problems for their daily operations. The overall business performance of firms shows a declining trend which continues to affect their operations during the short term. The research results demonstrate that the reform will provide long term benefits to the business sector yet MSME sustainability requires specific policy solutions that establish easier compliance methods together with speedy credit assessment processes.