GST breather to boost economy: Analysts

GST Council on Friday hiked the threshold turnover for the composition scheme that allows SMEs to pay 1-5% tax

The goods and services tax (GST) breather given to small and medium enterprises (SMEs) and exporters will address their liquidity issues, improve efficiencies and act as a shot-in-the-arm for the economy as a whole, analysts said.

The GST Council on Friday hiked the threshold turnover for the composition scheme that allows SMEs to pay 1-5 per cent tax without going through tedious formalities.

The government's move to relax IGST for six months and faster processing of refunds for exporters would address their liquidity issues and improve business efficiencies in the short-term, analysts at ratings agency Crisil said.

"Also, reducing compliance burden for SMEs