A sequencing issue

Demonetisation and GST have knocked out SMEs

It is too soon to determine the overall effect of the goods and services tax, or GST. Certainly, the roll-out, while expectedly disruptive, has not so far caused widespread chaos, so the government can be pleased but watchful. While the GST is not a perfect system, it is an important advance and contains the seeds of a truly transformative reform. Yet there are effects of the GST that the government must keep its eye on, particularly on small and medium enterprises, or SMEs. As has been widely reported, the GST might indeed lead to an increase in the size of