This study examines the impact of Goods and Services Tax (GST) on small businesses in India. GST was introduced in 2017 to replace multiple indirect taxes and create a unified tax system across the country. The study focuses on the benefits, challenges, compliance requirements, and financial impact of GST on small enterprises. Small businesses contribute significantly to employment generation and economic growth in India; therefore, understanding GST’s influence on their operations is important. The study highlights that GST improved transparency, reduced tax cascading, and simplified interstate trade. However, small businesses also faced difficulties related to digital filing, increased compliance costs, and lack of awareness regarding GST procedures. The findings suggest that while GST has long-term advantages, proper training and government support are essential for improving compliance among small business owners.