Over the last couple of years, the advent and augmentation of ancillary Industry market in NCR region of India has changed the way people buy and sell goods and services. Though the sector is still in the infancy stage, considering the endless possibilities in the Indian markets, huge hopes are pinned on the sector of Ancillary industry in NCR region is expected to perform better year on year. Taking into consideration the immense potential of the sector, one would expect tax laws to be conducive to the growth of this Ancillary industry sector. Unfortunately for the Ancillary Industry sector, the current indirect tax laws in India are an impediment to operations, thwarting the growth of the sector. On July 1, 2017, the business landscape in India underwent a profound transformation in its indirect taxation system, marked by the consolidation of numerous Central and State taxes into a unified framework known as the Goods and Services Tax (GST) law. This GST framework has left an indelible mark on businesses spanning various industries. Nevertheless, its impact on small and medium-sized enterprises (SMEs) has been notably more pronounced compared to their larger counterparts. It is therefore imperative to examine how these SMEs, with their limited scale and narrower profit margins, have coped with this substantial overhaul in taxation and infrastructure. In this context, it becomes crucial to address several critical questions. These inquiries revolve around understanding how the introduction of GST has affected Ancillary industries. The research holds great significance as it endeavors to examine various challenges confronting Ancillary industries in the state of NCR region of India, including issues related to implementation costs and compliance or non-compliance expenses. Furthermore, it aims to formulate recommendations and present them to the government and tax authorities in NCR region of India. These recommendations are intended to advocate for the concerns of NCR region of India's Ancillary industries during the various GST Council meetings convened periodically. It is crucial to underscore and bring to the Council's attention the escalating costs associated with GST compared to the potential benefits it may offer to Ancillary industries in NCR region of India. The study's findings must be considered in light of several significant economic events that have transpired in the past five years. The performance of ancillary industries units has been negatively affected by a sequence of events, including the demonetization in 2016, the introduction of the GST law in 2017, and the uncertainty brought about by the ongoing pandemic, leading to lockdowns in 2020 and 2021. According to some estimates, it is plausible that approximately 20% to 40% of Ancillary industries in NCR region of India could face permanent closure.