Getting SMEs ready for GST

Barely 10% of small businesses are in a GST-ready position, say experts

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. The GST applies to businesses with a turnover of Rs 20 lakh or more. The threshold is Rs 10 lakh for businesses in the north-eastern states.

While large companies have engaged a battery of experts to help them transition