SME Times is powered by   
Search News
Just in:   • Corporate India cuts gifting budget by 35-40 pc this Diwali  • Sell-off in banking stocks drag equity indices lower  • Reformative measures like GST will improve economy: Naidu  • Maruti's Dzire achieves 'fastest 1-lakh sales' mark  • Goodricke Group acquires Godfrey Phillips' tea business 
Last updated: 10 Oct, 2017  

smera-logo.jpg 'GST benefits will have positive impact on exporters, SMEs'

sme-gst-text.jpg
   Top Stories
» Corporate India cuts gifting budget by 35-40 pc this Diwali
» Reformative measures like GST will improve economy: Naidu
» North East Small Finance Bank commences operations: RBI
» Dhanteras witnesses good sale; No impact of note ban, GST
» PCs, gadgets shipment to exceed 2.35 bn in 2018
SME Times News Bureau | 10 Oct, 2017
The GST relief given to small and medium enterprises (SMEs) and exporters will have a positive impact, industry body SMERA said on Monday.

The GST Council on Friday raised the threshold turnover for the composition scheme that allows SMEs to pay 1-5 percent tax, without going through cumbersome formalities. The composite scheme for small businesses, which was applicable for turnover upto Rs 75 lakh has now been extended for gross turnover upto Rs 100 lakh.

Further, businesses with turnover upto Rs 150 lakh have now been allowed to file returns and pay GST on a quarterly basis, instead of a monthly basis.

"The measures will have a positive impact in these three different ways," SMERA, a joint initiative of SIDBI, D&B and leading public and private sector banks in India, said in a release in New Delhi.

It listed the benefits of the GST relief as: "Simplification of tax structure and minimisation of compliance costs for small businesses; evolution of an alternative GST mechanism for exports to ensure that SME exporters don't face liquidity or working capital pressures, and revision of tax rates for some unbranded common products to improve the competitiveness of those MSMEs who manufacture and distribute them."

Sankar Chakraborti, CEO of SMERA Ratings said: "This implies that the compliance burden and its costs for small entrepreneurs and enterprises would reduce significantly. Such a simplification of the taxation structure for small businesses will also lead to an increase in the taxpayers' base and improve compliance."

Taking stock of the exporters' working capital that was getting blocked under GST affecting their cash liquidity, the Council also decided last week to disburse their refunds through cheques for July and August from October 10 and October 18 onwards respectively.

A new electronic system of e-wallet is being created for exporters, which will be implemented from April 1, 2018. The exporters will receive some notional credit in their e-wallet as advance. They will pay their tax and the refund will get offset within the wallet. A technology company will be allotted the task to develop e-wallets for exporters.

Till then, exporters will have to pay nominal GST of 0.1 percent for procuring goods from domestic suppliers for export.
 
Print the Page Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
65.95
64.30
UK Pound
87.75
84.85
Euro
77.85
75.20
Japanese Yen 58.75 56.80
As on 19 Oct, 2017
  Daily Poll
Small traders even below the threshold limit too should register under GST system?
 Yes
 No
 Can't Say
  Commented Stories
» Starting an import export business: Basic guide for beginners(20)
» GST revamp: Relief to exporters, SMEs(13)
» Exposed: Banks behind unfairly high cost of credit(3)
» 'GST relaxations advanced Diwali celebrations'(1)
» 'Students should apply for interest subsidy on education loans'(1)
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter