“One of the major benefits of GST is that it provides an equal footing to large industries as well as MSMEs and gives better competitiveness to these enterprises. It will enable a positive business transformation by reducing cost of logistics, removing all forms of demarcations of premises and compliances for trading and manufacturing and no levying of central sales tax,” said Santosh Dalvi, partner and head of Western India, KPMG said while speaking at the two day conference.
Experts however believe that a lower threshold limit of Rs 20 lakh and a higher GST rate could have an adverse impact on the MSME sector.
They emphasized on absorption of proper technology which may help Indian MSMEs to stay relevant.
“The MSME sector through more than 6,000 products contributes about 8% to GDP besides 45% to the total manufacturing output and 40% to the exports from the country. It has the potential to spread industrial growth across the country and can be a major partner in the process of inclusive growth,” added Dalvi.
Source: The Times of India