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Even as MSMEs have been critical of the governments Goods and Services (GST) tax on multiple occasions since its launch in 2017, the MSME ministry said it hasnt come across any information related to the negative impact of the tax system. No such information has been received by this ministry, minis
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FAQ :
No, the MSME Ministry has stated that it has not received any information regarding the negative impact of the GST system on MSMEs.
The government has introduced several measures, including no GSTIN requirement on the Udyam Registration Portal for turnovers up to Rs 40 lakh, no registration needed for inter-state and intra-state service supplies up to Rs 20 lakh annually, and no registration for intra-state goods supply up to Rs 40 lakh annually.
Yes, industry associations have stated that they share MSMEs' concerns and suggestions related to GST during meetings with the ministry.
A 2018 RBI study noted that GST led to increased compliance and operating costs for MSMEs. A SIDBI study indicated that credit exposure initially declined post-GST but recovered by March 2018, suggesting these issues were transitional.
Some industry leaders feel that their representations are not always considered sincerely and that the government's responses can be poor or selective. They note that budget recommendations are often addressed to the Finance Ministry rather than the MSME Ministry.
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