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GST to provide level-playing field to MSMEs, boost competition: Assocham

The joint study said new tax regime will lead to market expansion

Press Trust of India  |  New Delhi 

GST, goods and services tax
Illustration: Ajay Mohanty

The 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 regime, according to a report.

The joint study by and Ashvin Parekh Advisory Services said the (GST) will lead to improved market expansion and lower logistical overheads, a boon for dealing in sales and services and purchase of capital goods.

According to the report, the will exert compliance burden and associated costs on since it aims to increase the taxpayer base.

The regime will usher in lower taxes, seamless input credit and logistics savings while swinging the market share towards organised players.

Indian 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 in the regime like no differentiation for luxury items and services, increase in cost of products, selective levying, burden of higher 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.)

First Published: Sun, July 09 2017. 14:57 IST