Vol. 7 No. 2 (2017): Vol 7, Iss 2, Year 2017

Implication of gst on msme& its governance

ACS Member of ICSI& Research Scholar in Department of Commerce, Pondicherry University
Professor & Head, Department of Commerce, Pondicherry University
Published June 30, 2017
  • MSME, GST, Input Tax Credit, Compliance etc
How to Cite
CS, .AZHAGURAJA, & MALABIKA. (2017). Implication of gst on msme& its governance. Journal of Management and Science, 7(2), 214-219. https://doi.org/10.26524/jms.2017.73


Abstract: In the present day context Micro, Small and Medium Enterprises MSMEs play a
vital role in strengthening the country‘s economy in terms of their contribution to GDP and
also providing employment. India being developing country with vast population faces the
problem of vast unemployment. To address this specific problem the Prime Minister of India
had taken a lots of initiative by way of promoting champagne like Make in India, Stand up
India, Start-Up India, Digital India and Pradhan Mantri Mudra Yojana (PMMY) etc. These
initiativesare aimed not only to help in the prosperity of Indian Economy but also to help in
addressing the unemployment problem among the youth. About 8% of the India‘s GDP is
from MSME, at the same time there are 51 million MSMEs providing employment
opportunity for about 111 million employees. In the recent past Govt of India has
implemented GST Bill which is seen with apprehension by different quarters of the economy
and industry. The GST is considered to be the most momentous reform in India which is
based on the destination principle that would consolidate the various existing taxes like
excise duty, central sales tax, service tax, octroi, local state taxes etc., The primary objective
behind the GST is to simplify the taxes so that the cascading effect can eliminated. The
GSTis structured in such a way so as to enable the environment for MSME, ease of doing
business though tax collection mechanism, reduction in corruption, easy compliance, easy
inter-state movement of goods etc. This paper brings out the implications of GST on MSMEs,
and the data for analysis primarily is based on Secondary data,collected through annual
reports of MSMEs& Statistical report of Income tax.


Download data is not yet available.