is set to impart better competitiveness to micro, small and medium enterprises and provide them a level-playing field with large firms owing to factors like an easier process of availing input credit and simpler tax
regime, according to a report.
The joint study by Assocham
and Ashvin Parekh Advisory Services said the Goods and Services Tax
(GST) will lead to improved market expansion and lower logistical overheads, a boon for MSMEs
dealing in sales and services and purchase of capital goods.
According to the report, the GST
will exert compliance burden and associated costs on MSMEs
since it aims to increase the taxpayer base.
regime will usher in lower taxes, seamless input tax
credit and logistics savings while swinging the market share towards organised players.
will be able to better compete with cheap cost centres such as China, the Philippines and Bangladesh, the report said.
The report also highlighted issues related to MSMEs
in the GST
regime like no tax
differentiation for luxury items and services, increase in cost of products, selective tax
levying, burden of higher tax
rate for service provider, excess working capital requirement and realignment of purchase and supply chain regime.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)