Adoption of GST Accounting Systems and Its Role in Improving Operational Efficiency of MSMEs

The introduction of the Goods and Services Tax (GST) in India in 2017 brought a significant transformation to the country’s indirect taxation framework. One of the major features of the GST regime is the adoption of digital accounting and compliance systems that require businesses to maintain electronic records, generate GST-compliant invoices, and file periodic tax returns through online platforms. For Micro, Small and Medium Enterprises (MSMEs), the transition to GST-enabled accounting systems represents both an opportunity and a challenge. While the digitalization of accounting practices has the potential to enhance transparency and operational efficiency, the process of adopting new technologies requires financial investment, technical expertise, and organizational adaptation.