The Goods and Services Tax (GST) would boost the competitiveness of micro, small and medium enterprises (MSMEs), noted a recent joint study by ASSOCHAM- Ashvin Parekh Advisory Services (APAS).

"From  an MSME perspective, GST will bring in many positives compared to the current systems such as easy process of availing input credit, single point tax, elimination of cascading tax system, and simpler taxation," said the study titled ‘Emerging Mantras for Bankers-Borrowers,' jointly conducted by ASSOCHAM and APAS.

The report also said that though there is no doubt that GST is aimed to increase the taxpayer base, and bring majorly MSMEs into its scope and that would put some burden of compliance and associated costs to them. But eventually, it will turn these MSMEs more competitive with a level playing field between large enterprises and them.

It also highlighted certain pros of GST on MSME sector viz., improved MSME market expansion, lower logistical overheads, boon for MSMEs dealing in sales and services, unified market and purchase of capital goods.

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