New Delhi, Oct 21 (KNN) With the government extending the threshold to 1.5 crores and allowing them to file the returns on a quarterly basis instead of the monthly filing under the Goods and Services  Tax (GST), the Micro, Small and Medium Enterprises (MSMEs) fear that this might lead to a shift in the interest away from them towards the big players in the sector.

Talking to KNN, Badish Jindal, President of the Federation Of Punjab Small Industries Association in a press interview explained the situation.

Jindal lamented that the multiplicity in the filing provision is likely to result in low business opportunities for the small and micro units and buyers will avoid purchasing the material from small units since they wouldn’t be able to take the input tax on a monthly basis.

He said that instead of increasing the threshold, the government must have introduced a single window with the provision of filing quarterly return for all the traders irrespective of their turnover. That would have ensured level playing field for all.

Echoing similar concerns, Ashwani Kohli, senior vice-president, Punjab Chamber of Small Exporters in a press interview informed that a fair share of manufacturers in small, medium and large category procures finished goods from small manufacturers having turnover of less than Rs 1.5 crore and later they (buyers) claim input tax credit in the form of monthly return.

But now since these small players will file quarterly returns, the accounts of buyers will be settled after three months only. This period might further stretch in case there is some issue with the paperwork leading to further delays.

With such scenario expected the small, medium and large manufacturers will gradually shift to bigger manufacturers resulting in a loss to the MSMEs.

(KNN/DA)