Uniform GST to help micro, small and medium enterprises

A uniform goods and services tax (GST) structure would help resolve most of the tax problems faced by the MSME sector, a joint survey of TiEDelhi and Deloitte said.

Introduction of a unified goods and services tax system would resolve most of the tax related challenges the industry faces. GST, which is scheduled to be introduced from 1 April 2010, would do away with most of the indirect taxes like excise, service tax at the Centre and VAT in states and will be a move towards a unified indirect tax regime.

The survey also pointed that entrepreneurs who want to set up micro, small and medium enterprises (MSME) often do not meet eligibility criteria to avail loans and most of them resort to self-financing.“Start ups and small businesses have very few options when it comes to raising capital,” it said adding government initiatives take time to reach grass-root levels.The survey said entrepreneurs have to go through time consuming processes to obtain various approvals and permits.There are about 2.6 crore MSME units in the country employing about 7 crore people.