New Delhi, July 27 (KNN) With the Goods and Services Tax (GST) about to complete its first month since implementation, for the Micro, Small and Medium Enterprises (MSMEs), understanding tax rates and compliance issues continue to remain an important concern, a study reveals.

According to business consulting and management firm Ernst and Young, the majority of the queries that come from the MSME sector is around the implications of the new taxation and tax rates for the products. The sector is still facing complications in complying with the One Nation One tax policy.

The firm had earlier set up a helpdesk for  small businesses and traders to assist them with the new tax regime. The study is based on the queries received by the helpdesk.

Talking to KNN, Vipin Malhan, President of Noida Entrepreneurs Association informed about the impact of GST on the MSMEs in his region so far.

Malhan said that along other concerns such as tax rates and compliance, the sector is facing the problem of lack of IT infrastructure. As it is mandatory to file the invoices on the GST server, computer with dedicated software and internet facility is important and it will take time for the MSMEs to get it in place.

He also informed that certain government departments themselves aren’t very clear regarding the different nuances of the new tax, which is hampering the transition.

Goods and Services tax was implemented from July 1 marking it as one of the biggest tax reforms in the country since independence. (KNN/ DA)