The implementation of the Goods and Services Tax (GST) in India represented a substantial alteration in the
nation's indirect tax framework, with the objectives of optimizing taxation, eliminating cascading effects, and
establishing a cohesive national market. Small and Medium Enterprises (SMEs), integral to the Indian
economy, have encountered both prospects and obstacles under this new environment. This research study
examines the diverse effects of GST on SMEs, concentrating on operational efficiency, compliance obligations,
cost frameworks, and market competitiveness. Primary and secondary data sources are employed to evaluate the
impact of GST on company processes, cash flow management, and supply chain integration within the SME
sector. The analysis indicates that although GST has improved transparency, broadened market access, and
streamlined inter-state trade, it has concurrently heightened the compliance burden, necessitated technological
deployment, and intensified working capital pressures on smaller firms. Policy implications and ideas are
presented to tackle these difficulties and utilize GST for sustainable expansion of SMEs.