SIDBI, FISME initiate drive for smooth adoption of GST by SMEs

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Saurabh Gupta | 14 Oct, 2016
A path breaking indirect Tax reforms is underway in India as Goods and Services Tax (GST) is being rolled out. Its repercussions will be felt by all economic sectors-small or large. To apprise MSMEs of the current state of debate about GST and to elicit their feedback to develop a capacity building agenda for smooth adoption by MSMEs, SIDBI and FISME have jointly initiating a nationwide campaign to hold a series of roundtables and webinars.

The first program in the series was on Thursday in New Delhi. The national body of Micro and Small & Medium Enterprises (MSMEs), Federation of Indian Micro and Small & Medium Enterprises (FISME), in association with Small Industries Development Bank of India (SIDBI) has organized a round table meet on 'GST: Identifying implications and facilitating adoption by MSMEs'. In addition to officials from Government of India & SIDBI, several domain experts would share their thoughts & vision with select MSMEs.

While addressing the meet, FISME President Dr Sangam Kurade said, "GST will be a game changer not only for the Indian economy but also for the global economy." KNN writes that Dr Kurade said, "There are a lot of eagerness and apprehensions among the MSMEs with regards to GST. It will surely not be easy for MSME who were not under the tax ambit so far but will not be a part of GST due to lowering of exemption limit from Rs 1.5 crore turnover to Rs 25 lakh."

"Lot of hand-holding has to be done to help MSMEs adopt GST and a lot depend on the government on how they play the balancing game," he added.

S. N. Tripathi, Addl. Secretary and Development Commissioner, MSME, said, "Anything that lowers the price for consumers helps the manufacturers ultimately. The MSME Ministry is working with the MSMEs to make it more acceptable to the sector."

He said MSME Minister Kalraj Mishra will be meeting the MSME Associations soon in which the minister will seek views from the industry representatives on GST.

Neeraj Prasad, Addl. Commissioner, GST, Ministry of Finance said, "MSME sector will grow manifold under the GST regime. It will also make inter-state movement of goods also simpler."

Mittal highlighted there are 11 to 12 industries that are getting affected directly due to GST including financial sector, technology, retail etc.

Mittal said GST will help bankers access authentic real time data rather than depending on proxy indicators.

He said, SIDBI along with FISME, is handholding the MSMEs for implementation of GST through roundtables like this, webinars, handbook etc.

The format of the programme is of roundtable to facilitate free and frank discussion by all participants.