International Journal of Commerce and Management Research

International Journal of Commerce and Management Research


International Journal of Commerce and Management Research
International Journal of Commerce and Management Research
Vol. 4, Issue 6 (2018)

GST: Impact on small and medium business (SMEs)


Ganesh S Hosapeti

Initially, the Indian small and medium business sector had been severely plagued by the complexities of the current multifaceted taxation structure. Indirect tax legislations often cost the small and medium business companies significant administrative and compliance expenses. Therefore, the implementation of the Goods and Services Tax is expected to provide a critical boost to the already lagging small and medium business industry. The GST will dole out a transformational shift from a complex multi-tiered tax structure to one that is unified and consistent. The implementation of the GST is expected to unify the Indian market and ensure a smoother, unrestricted flow of goods across the country. It cannot be expected that the border barriers will be done away with at once. However, reduced compliance scrutiny is more likely to transpire. Small and medium business units in remote or backward areas enjoy tax exemption based on their locations. As per the theory of GST, since the entire country is considered a unified market, the location-based exemptions stand invalid. This might be a true issue of concern for companies currently enrolled under this incentive. All in all, the small and medium business sector stands to gain more than losing with the implementation of India GST.
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