Micro, small and medium enterprises (MSMEs) are the backbone of the Indian economy.
While a majority of the MSMEs were earlier outside the purview of excise, the enactment of GST has broadened the taxpayer base and brought a majority of MSMEs under its regime.
Vaibhav Sankla, Managing Director, H&R Block India, lists the major benefits to MSMEs being brought under the GST ambit:
However, the implementation of GST is putting a lot of pressure on SMEs as they are facing several challenges in terms of in-depth technical know-how, expertise to deal with online systems and managing the compliance rating, which would assign ratings to businesses based on their obedience, which means they will have to ensure they are compliant with all norms to get a good rating. 'Here, GST solution providers play an important role as they can bring about a seamless transition to the new tax regime,' says Sankla. 'They can ensure that the SMEs are getting registered, managing compliance, liaising with the tax department and reconciling tax returns. For example, H&R Block India will provide end-to-end GST compliance assistance to hosts of Airbnb and provide a GST compliance manual to make them aware of the intricacies involved in GST implementation.'
- SERAPHINA D'SOUZA
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