The introduction of the Goods and Services Tax (GST) marked a historic shift in the indirect taxation system of India. Implemented on 1 July 2017, GST replaced a complex web of indirect taxes levied by both central and state governments, including Value Added Tax, excise duty, service tax, octroi, and entry tax. The primary objective of GST was to simplify taxation, eliminate the cascading effect of taxes, promote transparency, and create a unified national market.

Small retail businesses play a vital role in the Indian economy by ensuring last-mile distribution of goods, generating employment, and supporting local economies.

However, these businesses often operate with limited financial resources, informal accounting practices, and minimal exposure to digital systems. The implementation of GST brought significant changes in the way these businesses function,

particularly in areas such as tax registration, invoice generation, record maintenance, and periodic return filing.

This study aims to analyse the impact of GST on small retail businesses by examining both its advantages and challenges. While GST has provided benefits such as uniform tax rates, better compliance, and input tax credit, it has also increased the compliance burden through digital filing requirements and frequent regulatory updates. The study is based on secondary data and practical observations and seeks to provide insights that can help improve GST implementation for small retailers.