“I believe this program will provide a perfect platform to MSMEs facing problems due to GST implementation. GST will pave way for uniformity in laws, procedures and taxes. It will prevent cascading taxes as input tax credit will be applicable to all types of goods and services and at every level of their supply,” said Mishra.
GST was launched by the President and Prime Minister on July 1. It is an indirect tax reform, which aims to remove tax breaks between the states and bring a single market across the country. GST has abolished 17 indirect taxes imposed by the Central and State Governments on goods and services.
Mishra said exports can be balanced through GST. Products will become more competitive in international markets and exports will be encouraged, which will give push a to government’s Make in India campaign, he said.
The Union Minister informed that full amount of input tax credit can be obtained within the purchase year of GST.
He pointed out it will be easy to start a business under the new regime. At the moment there are a lot of turnover slabs in the sales tax department, which requires VAT registration, but GST is intended to standardize this.
GST will improve MSMEs market expansion. The regime has not differentiated between sales and services, which is “good news” for MSMEs related to the sales and services business model, Mishra stressed.
Speaking on the new DigitalMSME Scheme for promotion of ICT in MSME sector launched on First International MSME Day on June 27, Mishra said cloud computing is emerging as an affordable and practical option for in-house MSME IT infrastructure. All the MSME schemes, their implementations and solutions have all been explained in an easy to under way under Digital MSME, and enterprises can take advantage of it, he informed.
Ministers of State (MoS) Giriraj Singh and Haribhai P Chaudhary, newly appointed Secretary Arun Kumar Panda, and Additional Secretary & Development Commissioner (AS&DC) S N Tripathi were also present at the workshop.