GST Better For Small Industries Growth Claims Small Industry Chamber – ZMR Blog
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GST Better For Small Industries Growth Claims Small Industry Chamber

GST Better For Small Industries Growth Claims Small Industry Chamber

Among the allegations of losses to small industries and businesses by the introduction of Goods and Services Tax (GST) in the country, an organization of Micro, Small and Medium Enterprises stated that GST is a good step for the growth of small and medium industries. The organization says that since the GST is implemented, the small entrepreneurs is working under the formal system and this has opened new way for their development.

Chairman of Chamber of Indian Micro, Small and Medium Enterprises Mukesh Mohan Gupta said, “With the introduction of GST, all small industries will come under the formal system, it is necessary for their growth. In the beginning, they may face some strain, but this will open new ways for further development.

When asked about the grievances of small industries in terms of loans concerns from banks, Gupta said, “Small businesses working on formal basis have no problem in getting loans from banks. Banks are ready to lend, the problem can only be related to your account and business. If all the work is under formal system then the banks are ready to lend.”

Expressing similar views, the General Secretary of the industry organization Jain also said that the GST will increase the scope of the organized sector. This will create opportunities for equal level business for everyone. Everything in GST will be in the formal channel, it will not do anything out of the record. You have to bring your entire business under formal arrangement.

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It is notable that after the introduction of GST from July 1, the opposition parties have alleged that this has affected the country’s small entrepreneurs and traders badly and the work is stalled. Mukesh Mohan Gupta says, “The big industries today were all small industries earlier. While living in the category of organized industries, they enter business under formal arrangement and got an opportunity to move forward. If you do not register in the GST business, then big industries will be hesitant to buy goods from you.”

Industries investing up to Rs 25 Lakh in plant and machinery in the manufacturing sector fall into the category of micro enterprises, whereas units investing up to Rs 5 Crore in plant and machinery fall under the category of small-scale industries. Similarly, industries investing up to Rs 10 Crore in plant and machinery are involved in middle-class industries.

On investing up to Rs 10 Lakh on different types of machines and equipment in industries working in the service sector, micro-class up to Rs 2 Crore and investment up to Rs 5 Crore are considered as middle-class unit in machine and equipment. Small and medium enterprises contribute 37% of the country’s gross domestic product while small industries also contribute to the export.

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