The Goods and Services Tax (GST) will boost the competitiveness of micro, small and medium enterprises (MSMEs), noted a recent joint study by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) and Ashvin Parekh Advisory Services (APAS). It will bring many positives compared to the current systems such as easy process of availing input credit, single point tax, elimination of cascading tax system, and simpler taxation. There is no doubt that GST is aimed to increase the taxpayer base and would put some burden of compliance and associated costs to MSME. But eventually, it will turn these MSMEs more competitive with a level playing field between large enterprises and them.
The Ministry of Food Processing Industries has established a four member GST Facilitation Cell at its office to guide the industry about the new tax regime. The ministry has created a GST cell for the purpose of implementation and facilitating the rollout of GST with immediate effect. The GST facilitation cell will provide all possible support for the rollout of the levy to the major industry and business associations related to MoFPI. This cell will serve as the first point of contact to address any issue being faced by any sector related to the ministry. The GST cell will be equipped with the complete knowledge of the relevant GST Act, rules, rate structure etc. The Ministry is in the process of organising several programmes for the industry to sensitise associates about GST, and has also planned to conduct seminars to disseminate information about the new tax regime.