ADAPT­ING TO THE NEW REGIME

Assocham Bulletin - - INDUSTRY -

SME sec­tor has been play­ing an im­por­tant role in so­cio-eco­nomic de­vel­op­ment of the coun­try. The sec­tor's con­tri­bu­tion to the coun­try's GDP is ex­pected to in­crease to 22% in 2020 from 17% in 2011. The strong­est di£fer­en­tia­tor for SMEs is the com­pet­i­tive busi­ness model, which em­pha­sizes the use of cost-ef­fec­tive and lo­cal re­sources, cap­i­tal, pro­cesses and la­bor, en­sur­ing an ef­fec­tive ROI.

Re­cently de­mon­e­ti­za­tion cou­pled with other his­toric re­forms like CST re­sulted in sev­eral changes in the SME busi­ness mod­els go­ing for­ward. The im­ple­men­ta­tion of GST could ac­cel­er­ate the growth of In­dian SMEs & Star­tups by pro­mot­ing the govern­ment-led "Make in In­dia" ini­tia­tive and help­ing small-scale en­ter­prises in terms of ease of do­ing busi­ness. Other fac­tors like cash flow-re­lated is­sues, de­lays, and un­cer­tain­ties prove to be a chal­lenge for SMEs & Star­tups, which they need to over­come with bet­ter plan­ning and ex­e­cu­tion. It could re­sult in sev­eral win­ners/losers in mul­ti­ple sec­tors apart from dis­rupt­ing ex­ist­ing ways of do­ing busi­ness.

Af­ter suc­cess­ful com­ple­tion of four se­ries of SME

Sam­mel­lan, ASSOCHAM or­gan­ised its 5th SME Sam­mel­lan with the theme of' GST Im­pact on SME'S & Startup's: Chal­lenges & Op­por­tu­ni­ties', on July 29,2017. This Sam­mel­lan pro­vided a plat­form to spread aware­ness of the im­pact of GST on SMEs and Star­tups with the help of ex­perts from the In­dus­tries, CA Firms, Tax Con­sul­tants, Pol­icy mak­ers, and tech­nocrats. The Sam­mel­lan also dis­cussed on fu­elling the growth of SMEs through Fi­nance, IPOs, Credit rat­ings, Tech­nol­ogy pro­cesses, Ser­vices and In­no­va­tion.

The ses­sion was in­au­gu­rated by Mr. R. N. Raval, Joint Com­mis­sioner, Depart­ment of In­dus­tries, Govern­ment of Cu­jarat, with par­tic­i­pa­tion of around 120 del­e­gates.

Dur­ing the Sam­mel­lan, a Knowl­edge Pa­per on 'GST

im­pact on SMEsand Star­tups' was re­leased. The Knowl­edge Pa­per was pre­pared by Resur­gen­tIn­dia, ASSOCHAM's Knowl­edgePart­ner.

Mr. Dhaval Raval in his wel­come ad­dress said that the SME sec­tor is an im­por­tant pil­lar of In­dian econ­omy and with the im­ple­men­ta­tion of CST, In­dia's 51 mil­lion small medium en­ter­prises (SMEs)will take the dig­i­tal route and this will sig­nif­i­cantly change the way of do­ing busi­ness across in­dus­tries.

Mr. Pramod Ku­mar Vi­jay­var­gia, DCM, SIDBI, said that the SME­sec­tor should adapt to the new tech­nol­ogy and with the im­ple­men­ta­tion of CST, this sec­tor will be­come more com­pet­i­tive in the long run. It will fa­cil­i­tate ease of do­ing busi­ness with the sim­ple tax regime. The new tax regime will help the small scale in­dus­tries to grow into the large scale in­dus­tries.

Mr. [yoti Prakash Ca­dia, MD, Resur­gen­tIn­dia, shared his views on the is­sues and dif­fi­cul­ties faced by the en­tre­pre­neur and star­tups, he shared the sta­tis­tics of to­tal num­ber of MSME visa-vis gap of to­tal no of SMEs. He elab­o­rated on the is­sues of work­ing cap­i­tal ar­bi­trage process, and is­sues re­lated to tax com­pli­ance post CST. He also sug­gested the par­tic­i­pants to list down the is­sued faced by SMEand start up post CST and present their rec­om­men­da­tion to the com­pe­tent Covt. au­thor­ity to pro­mote ease of do­ing busi­ness.

Mr. Ajay Thakur, Head BSE- SME Plat­form elab­o­rat­ing on the pos­i­tive im­pact of CST stated that post CST, SME sec­tor will flour­ish as it is a sim­ple and uni­form tax. He said that SME sec­tor con­trib­utes around 60% to the CDP and is the back­bone of In­dian econ­omy. He said dis­rup­tion will come as an ob­sta­cle in a growth of SMEs but this sec­tor will have to over­come these hur­dles and pros­per to be­come large scale en­ter­prise. He em­pha­sized to get ven­ture into eq­uity mar­ket. In his con­clud­ing re­marks he said that eq­uity is mother of all funds.

Mr. B. N.Mankad, Joint Com­mis­sioner of State Tax, GoG, em­pha­sized on the pos­i­tive im­pact of GST on SMEs. He dis­cussed on the con­cep­tual as­pects, uni­for­mity and sim­plic­ity of GST struc­ture. By giv­ing an ex­am­ple of seam­less flow of tax credit, he en­cour­aged the SMEs and startup to get max­i­mum ben­e­fits of this tax struc­ture.

Mr. R. N. Raval, Joint Com­mis­sioner, Depart­ment of In­dus­tries, high­lighted on the var­i­ous fi­nan­cial in­cen­tive schemes of Gu­jarat in­dus­trial pol­icy 2015to pro­mote the SMEs & Star­tups.

Mr. Ohaval Raval, Chair­man, SME Com­mit­tee, ASSOCHAM Gu­jarat Coun­cil, Mr. Bharat Pa­tel, Chair­man Yudiz So­lu­tion, Mr. B. N. Mankad, Joint Com­mis­sioner of State Tax, GaG, Mr. R. N. Raval, Joint Com­mis­sioner; Depart­ment of In­dus­tries, GaG, Mr. Ajay...

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