The expert belief has suggested that Goods and Service Tax will bring some competitiveness into the MSMEs Arena. The Micro Small Medium Enterprise as of now scattered into organized and unorganized sector but both of them will come into an active position to meet the rumble. The said gesture was made by experts at manufacturing conclave which was held by Confederation of Indian Industries (CII) on Tuesday.
Santosh Dalvi, partner and head of Western India, KPMG said that “One of the major benefits of GST is that it provides an equal footing to large industries as well as MSMEs and gives better competitiveness to these enterprises. It will enable a positive business transformation by reducing cost of logistics, removing all forms of demarcations of premises and compliances for trading and manufacturing and no levying of central sales tax,”
However, the experts were seen vigilant about the threshold limit set by GST council of that a lower threshold limit of Rs 20 lakh and a higher GST rate which was pressed as an adverse affecting factor on MSME sector.
Dalvi said that “The MSME sector through more than 6,000 products contributes about 8% to GDP besides 45% of the total manufacturing output and 40% of the exports from the country. It has the potential to spread industrial growth across the country and can be a major partner in the process of inclusive growth.”
