Goods and Services Tax (GST) is a unified tax system and was introduced in Rajasthan on July 1, 2017 to replace multiple indirect taxes (VAT, service tax, excise duty). Implementation of GST in Rajasthan has significantly impacted small and medium enterprises (SMEs) as it has given both positive as well as negative impact from an accounting perspective. It has simplified the tax structure through creating unified system while replacing it with multiple indirect taxes. It has assisted to improve transparency while reducing the tax burden through input tax credit (ITC). On the other hand, GST has increased the compliance burden and has created the need from the SMEs to maintain detailed records and file regular returns. It has enhanced the necessity of digital accounting tools or professional assistance. Hence, although GST promotes standardization and transparency in financial records however, it is also increasing the compliance costs and complexity which is creating challenge for the SMEs. This research paper is focused towards critically analyzing the selected topic while going through different literature related to the selected topic and through collecting primary data through survey questionnaire method. For this purpose, probability sampling method is used and 100 employees from small businesses of Rajasthan will be selected for developing better understanding about the impact of GST implementation on SMEs in Rajasthan especially from accounting perspective. The research finding sheds light on the challenges as well as on the long-term advantages of GST (improved financial record-keeping, reduction in tax liabilities, etc.) and also offers the strategies that can help SMEs in manage GST compliance effectively (adoption of accounting software, training and awareness, engagement with professionals, etc.). Hence, this research paper can help the SMEs of Rajasthan to manage the GST compliance in a better way.