TIL Desk/Business/ New Delhi/ As lawmakers are in the process of clearing the decks for the rollout of the goods and services tax by July 1, small and medium enterprises (SMEs) appear to be the weakest link in corporate India’s efforts to be GST-compliant by the cut-off date. Of the estimated 8 million registered businesses under the VAT regime, around 90 per cent are SMEs.
While large companies have engaged a battery of experts to help them transition to the GST regime, SMEs are still struggling to assess the impact on their businesses. “Most remain unaware that the GST will drive a behaviour change and is not just a tax change or rate change,” says Bharat Goenka, managing director.
“We estimate less than 10 per cent of SMEs are in a GST-ready position,” says Pritam Mahure, a Pune-based chartered accountant and GST trainer. VS Datey, editor says at best 50 per cent of SMEs have IT systems robust enough to comply with the requirements of the GST.
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