Because the economy and taxes are inextricably intertwined, it is of the utmost importance to evaluate the effects that any modifications to the tax law will have on the relevant industries and businesses. The purpose of this study is to investigate the factors that influence the functioning of Micro, Small, and Medium-Sized Businesses (SMEs) in India in relation to the Goods and Services Tax (GST). In order to collect information from the 404 micro, small, and medium-sized enterprises (SMEs) that had registered, a comprehensive questionnaire was employed. Based on the results of partial least square equation modelling, it was determined that the Goods and Services Tax (GST) had a typically positive impact on the performance of companies. The route model demonstrated that elements that influence the Goods and Services Tax (GST), such as technology developments, systemic changes, and tax awareness and understanding, have all contributed to an improvement in performance in terms of ease of doing business, operational effectiveness, and profitability, while also reducing the amount of money that are blocked away in working capital. Nevertheless, the Goods and Services Tax (GST) compliance system has resulted in increased compliance among firms, which has had a detrimental effect on their overall performance. In addition, the study investigated how the size, turnover, and structure of small and medium-sized enterprises (SMEs) influence their performance as evaluated by their GST compliance system. With the support of the better performance of small and medium-sized enterprises (SMEs), the results may assist policymakers and those in other developing nations in concentrating on aspects of tax reform that boost performance and ultimately lead to greater economic growth for developing countries.

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Keywords: Goods, Services, Comprehensive, Enterprises.