SMEs are discriminated in comparison to traders under Composition Scheme: Okhla Association

New Delhi, Mar 7 (KNN) Under the new category of ‘composition Scheme’ created under the Goods and Services Tax (GST) Regime, Small and Medium Enterprises (SMEs) are discriminated against vis-à-vis traders, said Delhi based industrialists.

Even though they deserve a special treatment in terms of entitlements and privileges owing to their immense contribution to the manufacturing sector, President of Okhla Factory Owners Association, Udesh Babal told KNN India.

He said, “The Scheme has left no option for SMEs but to choose the scheme because of their small turnovers.”

GST Regime created a new category of ‘composition Scheme’ earlier for business with annual turnover up to Rs 50 lakh .i.e. SMEs. The new proposals will come into effect from April 1.

Under the new mechanism, threshold for goods suppliers in 20 States and the one Union Territory (with Assembly), .i.e. Delhi, for mandatory registration will be Rs 40 lakh, against the present Rs 20 lakh. (KNN/JM)