The Goods and Services Tax (GST) was introduced in India on 1 July 2017 as a major reform of the indirect taxation system. It replaced several central and state-level indirect taxes and aimed to create a more integrated, transparent and technology-driven tax structure. Small businesses play an important role in the Indian economy by generating employment, supporting local supply chains and contributing to economic development. However, small businesses generally operate with limited financial and administrative resources. Therefore, the implementation of GST has had significant implications for their financial performance. This research paper examines the impact of GST on the financial performance of small businesses in India. The study focuses on profitability, revenue, working capital, cash flow, compliance costs, input tax credit, accounting practices, digitalisation and business growth. The study is primarily based on secondary data and published research literature. The review indicates that GST has generated several benefits, including improved transparency, digital accounting, better documentation, reduction in cascading taxation and greater integration of markets. At the same time, small businesses have faced challenges related to compliance costs, digital systems, professional accounting expenses and working-capital management. The overall conclusion of the study is that GST has had a mixed impact in the short term but increasingly positive effects in the long term for businesses that have successfully adapted to the digital compliance environment.

Poorva Vasant Ghormare, Dr. Ujwala Narkhede, "Impact of GST on The Financial Performance of Small Businesses in India" International Journal of Scientific Research and Engineering Development, V9(5): Page(1059-1079) September - October 2026. ISSN: 2581-7175. www.ijsred.com. Published by Scientific and Academic Research Publishing.