Small and medium enterprises or SMEs have been the backbone of the Indian industry, contributing 45% to the GDP and employing more than 46 crore people. These industries are clocking an annual growth rate of almost 11.5%.
Small scale businesses are eligible for loans of up to Rs. 2 crores including NBFC or non-banking financial company loans. The limit of a cash credit to SME’s provided by Banks has been raised to 25% from 20%.
The introduction of GST has had a favourable impact on small and medium enterprises.
How Has GST Helped Small And Medium Enterprises?
GST has simplified the indirect tax payment for SMEs and lowered the taxes payable by them. The total taxes added to 32% when the share of the Center and State were combined together.
Not only is their suffering less due to a lower number of departments involved, but the taxes payable have now come down to between 18 and 22%.
GST has also made the process of registration much easier. There are no multiple rules involved regarding VAT for every state since GST is decided by a centralized process.
Small scale businesses with a turnover below Rs. 10 lacs don’t need to register for GST. It also makes compliance easier for such businesses.
Small Scale Industries in Digital India
The small scale industry in India is valued at $25.8 billion when it comes to the digital marketplace, and the B2B segment is poised for growth this year.
The digital era means that SMEs will collaborate with each other to grow and succeed as a group. There is a strong possibility of the growth of jobs in the SME sector. There are numerous initiatives by the Government like entrepreneurship and skill development programs, MUDRA loans, and Credit Guarantee Fund Scheme.
Technology has been an enabler for SMEs and will help them contribute more to the GDP.
Digital technology will help SMEs to meet the demands of a technology-driven market where an online presence for every business has become mandatory. Digitization will ensure faster response times, lower costs, streamlined production, and superior delivery of the final products.
The world is moving towards Industry 4.0, and India’s SMEs will need to adapt to this new norm.
India can combine the power of cheap labour with advanced technology to produce products of global quality. Productivity rates will go up, which will lead to higher production. The major reason why SMEs cannot compete globally is the excessive manual intervention in production.
With digital technology and GST, SMEs can scale new heights. It is important for SMEs to adopt the latest technology and register themselves if they come within the purview of GST with turnover higher than Rs. 20 lacs.
GST Registration in Maharashtra
If you are a small business owner in Maharashtra, to register your business, you need to log in through mahagst.gov.in login.
Mahagst makes GST registration and refunds easy. Auto approval takes place in 3 working days if the registration authority does not respond. You do not need to visit the registration authority. There are no fees to be paid and no account details to be provided while registering for GST.
The refund is also generated online for GST. It takes around 22 days for the refund order to be processed from the date the application for refund has been made. You will receive a refund in your registered bank account through NEFT.
You can file your GST return and make the payment online at the Mahagst portal. Small businesses can also avail of the over-the-counter facility. Any defects in the GST return will be communicated to you online, and you can comply with the defect online as well. You can download the Registration Certificate and get the same by email.
You can also find authority for an advanced ruling under Mahagst. The Government of Maharashtra has constituted the Maharashtra Authority for Advanced Ruling and Maharashtra Appellate Authority for Advanced Ruling to make GST payment easier. You will get all information related to procedures, all orders, and the checklist for filing GST.
The Mahagst portal also facilitates PTEC and PTRC with regard to professional tax registration. Both these can be paid using one challan.
Latest GST News in India
If you are a small scale business owner, you need to know the latest news on gst in india so as to avoid any penalties.
Here is some of the latest news in GST which would be helpful for you:
5th May 2020
The date for filing of GST returns, GSTR-9, along with reconciliation statement (GSTR 9-C) relating to the financial year 2018-19 has been extended till 30th September 2020. The EVC option can be used by companies when filing GSTR 3-B, and the last date is 30th June 2020. You can file your Nil GSTR-3B by SMS and if you are a resident of Jammu & Kashmir or Ladakh, the last date for filing GSTR 3B has been extended.
28th April 2020
PMT 09, used for correcting the wrongly paid challan, and the CGST rules relating to it become effective from 21st April, 2020.
3rd April 2020
The original due dates 20th June 2020, 22nd June 2020, and 24th June 2020 for GSTR 3-B, have been extended to 27, June 2020, 12th July 2020, and 14th July 2020.
If there are any adjudications or appeals pending relating to GST arising between 20th March 2020 and 29th June 2020, these can be addressed on 30th June 2020.
E-way bills which expire between 20th March 2020 and 15th April 2020 are now extended till 30th April 2020
Due to Covid-19, the dates of filing certain returns have been extended. The returns include GSTR-8, GSTR-7, GSTR-6, GSTR-5A, GSTR-5, ITC-04, GSTR-4, CMP-02, and CMP-08.
There is a waiver of GSTR-3B for certain months in case of late fee payment.
Interest charges are 9% for business owners with a turnover exceeding Rs. 5 crores subject to certain conditions.
Gain by Registering for GST
If you are a small business owner, you could either be exempt from GST if your turnover is below Rs. 20 lacs or you pay lower taxes compared to the pre-GST regime. Just register for GST and enjoy the benefits.