Crisil SME tracker: GST bodes short-term pain but long-term gain for MSMEs

As things stand the regime could take a couple of quarters to stabilise

Implementation of the Goods and Services Tax (GST), scheduled to take effect on July 1, 2017, is expected to pose challenges for micro, small and medium enterprises (MSMEs) in the short term. In the long run however, it will help them compete better.

As things stand, though there is clarity on tax rates for most goods and services, the regime could take a couple of quarters to stabilise. Indeed, a sample survey of rated MSMEs by CRISIL reveals that at least a quarter of them are yet to register for the Goods and Service Tax Identification Number (GSTIN), a pre-requisite. Pendency