Latest MSME News Updates

06-07-2017

 The Goods and Services Tax (GST) will prove to be a progressive reform for the Micro, Small and Medium Enterprises (MSME) in the country, however there is a need for further simplification of the norms, also proper monitoring must be ensured to prevent misuse of excessive power by the tax inspectors, Indian Industries Association (IIA) asserted.


Talking to KNN, Sunil Vaish, President of the Indian Industries Association spoke of the Goods and Services Tax (GST) and its impact on the MSME sector.


“The sector welcomes the reform, GST as a system is seen as a positive step not just in India but across the world, it certainly is progressive,” he said.


He however expressed concern over the complications in the policy. If further simplified, it will be easy for the industry to conform to the new norms.


Vaish added that GST helps MSMEs to do Inter-State business with ease as there is uniformity in taxation in the entire country.


Also with the coming of GST, many incentives and exemptions that were given to MSMEs get eliminated, which remains a concern for the sector to cope up with as the MSME units operate on very small scale and some sort of support is expected.


Raising concern over inspector raj, Sunil said that the industry fears uncontrolled practice of power by the tax department officials. Citing the earlier tax reform he said that when VAT was implemented it was also welcomed but over due course of time due to the unrestricted power with the authorities, the reform lost its essence. Therefore it is very important for the GST council to ensure monitoring.


Commenting upon the IT infrastructure that is required for GST, Sunil said that it will evolve over time. Even if the industries set up computers and software, there is the problem of connectivity which needs to be addressed.


The IIA President also spoke about the New Industrial policy that is being introduced in Uttar Pradesh. Initial Assessment suggests that the policy is largely for the big enterprises and not the MSMEs, whereas the true essence of industry in Uttar Pradesh is the Micro and Small units.


He informed that his association has submitted representation in this regard to the State MSME officials and Uttar Pradesh government,


Dinesh Sharma, Deputy CM of Uttar Pradesh recently lauded the GST and said that it will benefit the MSME sector the most. He also said that the New industrial policy will soon set its foot in the state. 


 


Click at: http://knnindia.co.in/news/newsdetails/msme/gst-progressive-for-msmes-if-simplification-and-fair-monitoring-is-ensured-iia 

 
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