Will the GST threaten the survival of MSMEs?
Goods and Services Tax (GST) will be a landmark change in the Indian tax structure after Independence. It is expected that it will simplify and harmonise the indirect tax regime in the country as it will do away with the multiplicity of taxes at the State and Central levels which has resulted in a complex indirect tax structure. Though MSMEs welcome and are looking forward to its roll-out, the GST regime has both positive and negative implications.
Under GST, credit will be available all along the chain; presently, it is available only in excise. MSMEs generally tend to operate in the same State; or else, they will have to comply with not only tax requirements in that State, but also that of the other States—CST and then tax deposit. The burden of filling multiple forms will add to their burden.
MSMEs will now be able to reach out to the whole country in the sense that they will find it as easy or difficult to sell their products across the States as in the State they operate from. There will not be much difference in compliance; only IGST component will be added wherein MSMEs will be able to sell their products seamlessly and also avail themselves of credit. This ‘one nation, one market’ approach will ease the restrictions vis-à-vis operations and the tax quantum will also be almost the same. GST will therefore foster a seamless Indian market due to seamless transfer of input tax credit from one stage to another in the chain of value addition.
This story is from the July 2017 edition of Indian Management.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the July 2017 edition of Indian Management.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Trust is a must
Trust a belief in the abilities, integrity, values, and character of any organisation is one of the most important management principles.
Listen To Your Customers
A good customer experience management strategy will not just help retain existing customers but also attract new ones.
The hand that feeds
Providing free meals to employees is an effective way to increase engagement and boost productivity.
Survival secrets
Thrive at the workplace with these simple adaptations.
Plan backwards
Pioneer in the venture capital and private equity fields and co-founder of four transformational private equity firms, Bryan C Cressey opines that we have been taught backwards in many important ways, people can work an entire career without seeing these roadblocks to their achievements, and if you recognise and bust these five myths, you will become far more successful.
For a sweet deal
Negotiation is a discovery process for both sides; better interactions will lead all parties to what they want.
Humanise. Optimise. Digitise
Engaging employees in critical to the survival of an organisation, since the future of business is (still) people.
Beyond the call of duty
A servant leadership model can serve the purpose best when dealing with a distributed workforce.
Workplace courage
Leaders need to build courage in order to enhance their self-reliance and contribution to the team.
Focused on reality
Are you a sales manager or a true sales leader? The difference, David Mattson, CEO, Sandler® and author, Scaling Sales Success: 16 Key Principles For Sales Leaders, maintains, comes down to whether you can see beyond five classic myths that we often tell ourselves about selling.
