Post demonetization-GST, SME sector suffering from existential crisis: Yashwant Sinha

New Delhi, Sept 27 (KNN) In the aftermath of the slowed figure of the country’s GDP post demonization era and early Goods and Services Tax (GST) phase, the Small and Medium Enterprises (SMEs) in the country are suffering from an unprecedented existential crisis, a Former Minister of Finance and Senior BJP leader Yashwant Sinha has said.

Media reports quoted Sinha as saying that the country’s SME sector is trying to find its way out of the problems that are surrounding the economy.

Commenting on the implementation of the Goods and Services Tax (GST), Sinha said that the grey areas in the implementation cannot be ignored, that have turned into a nightmare for the traders and businessmen.

He further said that the input tax credit demand under the new taxation has risen up to 65,000 crore against a collection of 95,000 crores, following which the tax office is in the process of outlining the enterprises that had made the large claims.

Sinha also highlighted the problem of cash flow that the SME sector is facing in the recent times because of the piling up of credit.

In line with the concerns raised by some MSMEs earlier that the inspector raj has rose despite new rules, Sinha said that the raid raj has become the new normal, leading to anxiety in the businesses. (KNN/ DA)