Upcoming GST holds various obligations and complexities for the sectors relying upon it, as the Small medium enterprise are going to sail through some tough time once the GST comes into being. In between, the SME sector is pulled up in front of the council and central government for the redressal.
Currently manufacturing cost act in SME sector grants a total of INR 1.5 crores of exemptions in the manufacturing cost but once after the GST kicks in, the exemptions will decrease down to the value of Rs. 20 lakh only. Even small traders will have to struggle after the roll out of goods and service tax and the concerned factor is that the SME sector will be playing very hard over some its aspects like, manufacturing, sale, service, valuation, and input cost which will gain rise over the period of time once GST comes into picture.
Forceful input tax credit is another big issue being raised by the SME community and as mentioned by a renowned IT firm that putting input tax credit in the SME framework might harm the SME economic structure and by the laws of GST, the taxes paid before an investment can be reduced even when giving tax on an enterprise output and which also know as the input credit.
Read Also: Impact of Goods and Services Tax (GST) on SMES and Startups
The transactional record must be kept up to date by every B2B companies every month while taxpayers must maintain the activities related to electricity bills, challan, credit note, debit note, receipt voucher, payment voucher and the e-bill summary separately. The record will be a means to analyze and evaluate by the tax authority to find out how the transaction is being carried out in a particular organization while also ascertaining the value of the organization as a whole.
After the goods and service tax being implemented, there would be around 6.5 million of business entities which will be tracked and recorded on a regular basis while a load of 1.2 billion to 2 billion receipts would be uploaded every month in order to conduct a smooth and hassle free GST operation.
