Has GST, Demonetisation impacted your business? Here’s what govt says

Has GST, Demonetisation impacted your business? Here’s what govt says

As per Bhanu Pratap Singh Verma, Minister of State, MSME Ministry, "MSME sector has shown resilience in terms of GST growth despite the COVID-19 disruptions,” based on YoY growth in GST paid by MSMEs in FY22

As per Bhanu Pratap Singh Verma, Minister of State, MSME Ministry, "MSME sector has shown resilience in terms of GST growth despite the COVID-19 disruptions,” based on YoY growth in GST paid by MSMEs in FY22

The FY20 and FY21 GST by micro-enterprises stood at Rs 2.2 lakh crore and Rs 2 lakh crore respectively while FY22 collection stood at Rs 2.3 lakh crore, crossing the pre-pandemic levels

The FY20 and FY21 GST by micro-enterprises stood at Rs 2.2 lakh crore and Rs 2 lakh crore respectively while FY22 collection stood at Rs 2.3 lakh crore, crossing the pre-pandemic levels

Likewise, GST paid by small enterprises remained flat at Rs 0.9 lakh crore in FY20 and FY21 but grew to Rs 1 lakh crore in FY22

Likewise, GST paid by small enterprises remained flat at Rs 0.9 lakh crore in FY20 and FY21 but grew to Rs 1 lakh crore in FY22

Similarly, for medium enterprises, the GST paid dropped from Rs 1.9 lakh crore in FY20 to Rs 1.8 lakh crore in FY21 but recovered to Rs 2 lakh crore in FY22, according to the data from the 2022-23

Similarly, for medium enterprises, the GST paid dropped from Rs 1.9 lakh crore in FY20 to Rs 1.8 lakh crore in FY21 but recovered to Rs 2 lakh crore in FY22, according to the data from the 2022-23

While Verma said the ministry has not conducted any independent assessment of the impact of demonetisation and GST on MSMEs’ growth, numerous measures were taken to encourage MSMEs

While Verma said the ministry has not conducted any independent assessment of the impact of demonetisation and GST on MSMEs’ growth, numerous measures were taken to encourage MSMEs

Such as no requirement of GSTIN on the Udyam Registration Portal up to the ceiling of Rs 40 lakh turnover, no registration required for the inter-state and intra-state supply of services up to Rs 20 lakhs in a year, no registration required for the intra-state supply of goods up to Rs 40 lakh in a year, etc.

Such as no requirement of GSTIN on the Udyam Registration Portal up to the ceiling of Rs 40 lakh turnover, no registration required for the inter-state and intra-state supply of services up to Rs 20 lakhs in a year, no registration required for the intra-state supply of goods up to Rs 40 lakh in a year, etc.

As per a Deloitte Survey on GST impact on businesses in June this year with 612 responses from MSMEs and large units, 88% MSMEs reported reduction in goods and services costs

As per a Deloitte Survey on GST impact on businesses in June this year with 612 responses from MSMEs and large units, 88% MSMEs reported reduction in goods and services costs

73% said relaxation of threshold and reduction of restrictions for availing the composition scheme benefited them

73% said relaxation of threshold and reduction of restrictions for availing the composition scheme benefited them

More than 50% of MSMEs sought removing restrictions of input tax credits such as in relation to employees and set up of commercial infrastructure along with rationalising GST rates for the entire supply chain

More than 50% of MSMEs sought removing restrictions of input tax credits such as in relation to employees and set up of commercial infrastructure along with rationalising GST rates for the entire supply chain