New Delhi, Oct 10 (KNN) According to credit rating agency,  SMERA, the recent simplification of tax structure and minimization of compliance cost under GST will have positive impact on micro, small and medium enterprises (MSMEs) and exporters.

GST council on Friday increased the threshold turnover limit to 1 crore from 75 lakh, So that MSMEs could pay 1-5% tax without intricate formalities.

Also, the businesses with turnover 1.5 crore can now file returns and pay GST on quarterly basis rather than monthly basis.

On this recent development Sankar Chakraborti, CEO of SMERA Ratings in a press interview said that this simplification of the taxation will lead to increase in the taxpayers’ base and reduction in compliance burden.

According to SMERA, these changes will improve the competitiveness of MSMEs in manufacturing and distribution arena and the working capital pressure faced by SME exporters will be reduced significantly.

GST council also announced that an electronic system of e-wallet is going to be implemented from April, 2018 which can be used for all GST related transactions.

SMERA Ratings Limited is a full service Credit Rating Agency, registered with the Securities and Exchange Board of India (SEBI), and accredited by Reserve Bank of India (RBI) as an external credit assessment Institution. (KNN/AG)