7 Major Impacts Of GSTR On MSME Industry.
November 05, 2019
GSTR(Goods and Services Tax Returns) are filed by those who are registered under GST. The GST(Goods and Services Tax) is an indirect tax imposed in India on the supply of goods and services. It is a comprehensive , multistage destination based tax. GST is comprehensive because it subsumes almost all indirect taxes. 2019 is the third year of GST. Factually, businesses are still struggling with compliance for FY 2017-18, when GST was implemented for the first time. The annual return, called GSTR-9 for the FY 2017-18 was due on June 30th 2019. After initial problematics, things are now settling down on GSTN system.
Some of the positive impacts of GST on MSME industry are:
- The earlier taxation system was a complicated one with 17 different taxes. Under the online GST system, despite several returns been filed, unification is evident. Due to this, benefits are seen on MSMEs.
- The evident increase in the GST taxpayer base shows that businesses are constantly moving on to formal economy, which brings increased visibility and opportunities for MSMEs.
- The complete online GST system has removed border glitches and saves a lot on time and money for MSMEs. Before, taxation like different VAT laws at different states, local inspections and inter-state transactions were big hindrances for these industries.
- MSMEs were restricted to local markets before, but now they are able to supply goods across states hassle free. They are getting access to large markets as well.
- Now, MSMEs can start businesses anytime anywhere with the one stop online GST registration.
- Avoidance of double taxes and seamless input credit has highly benefitted MSMEs.
- In India, after agriculture, MSMEs are the second largest employment sector. Indirectly with the above benefits discussed, MSMEs are going to contribute in increasing employment opportunities.
Score Me, an innovative software analytics company has developed a GSTR Analysis tool with the help of it’s deep rooted experts team. The usefulness of the software can be summarized as:
- It captures and analyzes raw data from GSTN server and gives detailed, intuitive insights from a defined period on various sales and purchase transactions.
- Not only sales and purchase data, defected and returned products are also captured by this software.
- The tool gives flexibility in choosing the period of capturing and analyzing data by the user.
- Calculations are made through sector analysis, geographical analysis etc, which are insight based and dependable.