IMPACT OF COVID-19 ON GOODS AND SERVICES TAX (GST) WITH RESPECT TO MICRO SMALL AND MEDIUM ENTERPRISES (MSME) SECTOR

Abstract

Covid-19, a giant virus has shaken the entire world and no country is left from its grasp. It has affected people’s life and have created an imbalance in the world economy. The impact is devastating and the outcome is unpredictable and uncertain. The purpose of this research paper is to study that how Covid-19 has till now affected the GST collections and GST scenario in the MSME sector. To revive the MSME sector we have tried to highlight revival strategies of Indian MSME once the phase of uncertainty fades. We have discussed few measures that Govt of India has taken to achieve the dream of Self- Reliant India or Atmanirbhar Bharat. After studying and analysing the current impact, it has been observed that the business practices of Indian MSMEs will be totally changed. MSMEs have to adopt digital practices in their business and bring in innovation. Due to nation-wide lockdown, supply of goods and services are affected adversely which has affected the GST collection. The MSMEs, once the pandemic is over should focus on cash flows rather than profit and should look for accessing finance.