Empowering MSMEs with News & Insights

MSMEs in Northeast still struggling with financial-mental complexities of GST

Updated: Sep 05, 2017 05:22:11am

MSMEs in Northeast still struggling with financial-mental complexities of GST

New Delhi, September 5 (KNN) Its been almost three months since the roll out of Goods and Services Tax (GST) but the Micro, Small and Medium Enterprises (MSMEs) in the North-Eastern part of the country are yet to experience ease under the new tax regime, MSME body informed.

Talking to KNN, R.S Joshi, Chairman of Federation of Industry & Commerce of North Eastern Region (FINER) said that the units especially the Micro and Small ones are facing problems despite there being claims of an easy or smooth transition.

Joshi said that the first filing under the GST was met with a lot of difficulties. The GSTN server on which the data was to be uploaded worked in a poor state.

“The problem on the GST server is evident throughout the country, because of which even the government had to reopen the window and provide a newer deadline. But this problem becomes even bigger for the MSMEs in the north-eastern regions as the connectivity itself is an issue, in addition to the poor internet connection the server fails leaving MSMEs helpless,” said Joshi.

Joshi further informed that the MSMEs are facing both financial as well as mental burden under the new tax regime.

Because of the small and micro entrepreneur’s inability to file the forms by himself, he is forced to approach GST experts and CA’s that add to the cost on production for the unit.

In addition to the financial burden, the MSME entrepreneurs are also confused and mentally harassed over the punitive measures in case they are not able to meet the GST norms and requirements resulting in a lose-lose situation for the MSME on both the ends.

Listing the problems further, Joshi added that the MSMEs are facing a great deal of complications in availing the input tax credit returns due to the problem of stock keeping and matching it.

While the claim on input tax credit seems to be an easy thing for the MSMEs to avail, majority of the MSMEs associated with FINER are doubtful over their eligibility in availing the return.

Joshi informed that while the Medium scale is beginning to cope up under the One Nation One tax regime of the government, the micro and small sector is still struggling to cope up with the GST. 



    Be first to give your comments.


Required fields are marked *