With all the GST information circulating around, we at Vyapar were wondering how this would affect the daily running of the SME ( small & medium entrepreneur ) Sector. Especially since this sector already follows established norms and ways of running their businesses.
Is the GST going to solve all their taxation issues ? Is the ‘ One nation, One tax’ actually helping the regular business man?
Well everything has a positive and a negative, Vyapar previously covered the positive, and now, we bring into focus the disadvantages of the GST sector for the small scale business.
Here is a list of :
Disadvantages of GST bill to the SME sector :
These are the few disadvantages of GST bill implementation for SME’s,
- They will need to start using more digital systems which have tax assistance. This might involve a one time setup cost.
- They will need more man-power training for self sufficiency,
- They will need to accept the new tax regime and
- They will need to change the way book keeping is done to match the new system.
- The protection that SMEs enjoy currently will be gone and they will come under the standard GST umbrella.
But, all these are the changes which a business anyway undergoes when it grows and expands. So instead of expressing grievance over the additional costs of adopting the new system, a wise business man should envision the long term prosperity and join the GST mainstream right away.
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