{"id":158,"date":"2018-04-16T08:47:12","date_gmt":"2018-04-16T08:47:12","guid":{"rendered":"https:\/\/blog3.indifi.com\/?p=158"},"modified":"2019-08-13T07:29:52","modified_gmt":"2019-08-13T07:29:52","slug":"gst-success-for-msmes","status":"publish","type":"post","link":"https:\/\/www.indifi.com\/blog\/gst-success-for-msmes\/","title":{"rendered":"The Era Of GST Spells Success For Small And Medium Businesses"},"content":{"rendered":"\n<div class=\"wp-block-image size-medium wp-image-665\"><figure class=\"alignleft\"><img decoding=\"async\" loading=\"lazy\" width=\"450\" height=\"300\" src=\"https:\/\/blog3.indifi.com\/wp-content\/uploads\/2018\/04\/The-Era-of-GST-Spells-Success-for-Small-and-Medium-Businesses-450x300.jpeg\" alt=\"The Era of GST Spells Success for Small and Medium Businesses\" class=\"wp-image-665\"\/><figcaption><em>The Era of GST Spells Success for Small and Medium Businesses<\/em><\/figcaption><\/figure><\/div>\n\n\n\n<p>At the stroke of midnight on 30th June 2017, India formally entered the era of \u201cOne Nation, One Tax.\u201d While there\u2019s a lot of optimism around GST (Goods and Services Tax), there are apprehensions too. Some teething troubles are to be expected, given how massive this new regulation is.<\/p>\n\n\n\n<p>But, given some time, one can witness the significant impacts of GST on businesses. Apart from simplifying tax payments by companies, GST will bring in transparency and lead to MSME businesses being organized, thereby boosting the overall growth momentum.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_67_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.indifi.com\/blog\/gst-success-for-msmes\/#Heres_A_Look_At_How_GST_Impacts_Small_And_Medium_Businesses\" title=\"Here\u2019s A Look At How GST Impacts Small And Medium Businesses:\">Here\u2019s A Look At How GST Impacts Small And Medium Businesses:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.indifi.com\/blog\/gst-success-for-msmes\/#Simplified_And_Easy_Taxation\" title=\"Simplified And Easy Taxation\">Simplified And Easy Taxation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.indifi.com\/blog\/gst-success-for-msmes\/#Formalization_Of_MSME_Credit\" title=\"Formalization Of MSME Credit\">Formalization Of MSME Credit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.indifi.com\/blog\/gst-success-for-msmes\/#Ease_Of_Business_And_Faster_Delivery\" title=\"Ease Of Business And Faster Delivery\">Ease Of Business And Faster Delivery<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.indifi.com\/blog\/gst-success-for-msmes\/#On_Track_For_Strong_Growth\" title=\"On Track For Strong Growth\">On Track For Strong Growth<\/a><\/li><\/ul><\/nav><\/div>\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Heres_A_Look_At_How_GST_Impacts_Small_And_Medium_Businesses\"><\/span>Here\u2019s A Look At How GST Impacts Small And Medium Businesses:<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p>SMEs are a significant contributor to the national economy with more than 50 million units all across the country. Prior to GST, the MSME sector was plagued with myriad taxes. They had to deal with nearly 27 different taxes, which impacted their growth and productivity massively.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Simplified_And_Easy_Taxation\"><\/span>Simplified And Easy Taxation<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p>With GST, businesses no longer have to deal with a plethora of taxes. This means that inter-state business is smooth and streamlined, thereby eliminating supply chain bottlenecks. Additionally, under the GST framework, businesses can avail input tax credit via the supply chain, thus avoiding dual taxation.<\/p>\n\n\n\n<p>This means, enterprises now prefer working with other suppliers in the chain who have paid GST and documented the trade so that they can easily avail credit. Looking at the big picture, this means more and more organisations, will fall into the habit of documenting production and sales, thereby coming under the ambit of taxation.<\/p>\n\n\n\n<div class=\"wp-block-button aligncenter\"><a class=\"wp-block-button__link has-background has-vivid-green-cyan-background-color\" href=\"https:\/\/www.indifi.com\/msme-loans\">MSME Loan Without Collateral<\/a><\/div>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Formalization_Of_MSME_Credit\"><\/span>Formalization Of MSME Credit<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p>Funding is one of the major problems faced by MSME businesses. Many of these businesses before GST lacked proper documentation and bank statements. This made it highly difficult for them to avail funding from private financial institutions and banks.<\/p>\n\n\n\n<p>With GST, SME businesses have to follow proper documentation to avail tax credit. This means lenders can quickly verify the cash flow statements of these enterprises and check whether they\u2019re creditworthy.<\/p>\n\n\n\n<p>So, finding the right funding now becomes easy for small to medium businesses. With the increased availability of formal credits, businesses now can get the necessary funding to boost their growth.<\/p>\n\n\n\n<p class=\"has-text-color has-vivid-green-cyan-color\">Also Read: <a href=\"https:\/\/blog.indifi.com\/5-reasons-travel-agencies-business-loans\/\">5 Reasons For Travel Agencies To Seek Business Loans<\/a> <\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Ease_Of_Business_And_Faster_Delivery\"><\/span>Ease Of Business And Faster Delivery<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p>Earlier, to operate a business in various parts of the country, one had to have a VAT number for multiple states. Additionally, varying tax rules in different states of the country added to the complications. With GST, all you need to do is get a single GST number and run your business in any part of the country. This is a boon for SMEs as it helps in expansion and business growth.<\/p>\n\n\n\n<p>Earlier, businesses had to pay entry tax for products entering the border of another state. With GST, there\u2019s no entry tax, meaning you can manufacture and sell your goods in any part of the country. This means optimised logistics and seamless transport and delivery services.<\/p>\n\n\n\n<p class=\"has-text-color has-vivid-green-cyan-color\"><a href=\"https:\/\/www.indifi.com\/msme-loans\">Apply For MSMEs Online<\/a><\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"On_Track_For_Strong_Growth\"><\/span>On Track For Strong Growth<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p>Economists predict that in 2018\u201319, India would witness GDP crossing 8%, thanks to the overall improvement of the economy along with reforms like GST. Consumption is already on the upward scale. With the global economy and commodity prices stabilising, India is all set for a steady growth in the coming years. And, this means your business is all set to move forward thanks to GST.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>At the stroke of midnight on 30th June 2017, India formally entered the era of \u201cOne Nation, One Tax.\u201d While there\u2019s a lot of optimism around GST (Goods and Services Tax), there are apprehensions too. Some teething troubles are to be expected, given how massive this new regulation is. But, given some time, one can [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":665,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[141],"tags":[12,65,66,67,24],"_links":{"self":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/158"}],"collection":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/comments?post=158"}],"version-history":[{"count":7,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/158\/revisions"}],"predecessor-version":[{"id":1905,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/158\/revisions\/1905"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media\/665"}],"wp:attachment":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media?parent=158"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/categories?post=158"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/tags?post=158"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}