Goods and Services Tax (GST): GST is one of the major indirect tax reforms of India, which has been implemented in 2017 to establish a unified national market through a single tax regime system replacing various indirect taxes. Although the introduction of GST has made the tax regime easier and more transparent, it has also had positive and negative effects on the profitability of Small and Medium Enterprises (SMEs). SMEs are an important part of the Indian economy as they create significant employment, produce industry goods, contribute to exports, and contribute a significant amount to Gross Domestic Product (GDP). To analyze the impact of GST reforms on profitability of SMEs from their perspective, this study explores the impact of GST reforms on tax compliance, operational efficiency, input tax credit, working capital management and business performance. The study uses descriptive and analytical methodology through primary and secondary data to gain understanding about the perceptions and experiences of the owners and managers of SMEs about the implementation of GST. The results showed that GST has brought transparency, better tax administration, and interstate trade, and has bolstered the competitiveness of businesses in the long run. Even so, the hurdles SMEs meet are still not really gone, especially because regulations keep changing, tax return submission can be complicated, plus the effort needed to mesh with new technologies, and then there are the compliance expenditures. On top of that, cash flow gets squeezed when input tax credit claims come late. This work points out that policy backing matters a lot, along with making compliance easier, building digital capability in a steady manner, and running continuing awareness sessions so that the GST reforms can deliver the highest possible gains. It also suggests that while GST has helped the overall tax setup run more efficiently, the government still has to push for more support and better handholding to help SMEs meet obligations, and in turn lift profitability and more inclusive economic growth. Overall, the findings provide useful policy direction and real-world takeaways for policy makers, tax administrators, scholars, and business users who want to strengthen how well the GST framework works for India’s SME group.