FAQS ON SECTORAL SERIES: MSME AND GOODS AND SERVICES TAX 2023

MSMEs with an annual turnover of up to Rs. 40 lakhs are exempt from GST registration.

MSMEs with a turnover between Rs. 40 lakhs and Rs. 1.5 crores can opt for the Composition Scheme and pay a lower GST rate.

MSMEs with a turnover above Rs. 1.5 crores must register for GST and comply with its regulations.

MSMEs can claim input tax credit on GST paid on purchases of goods and services used for business purposes.

GST has simplified the tax system for MSMEs by replacing multiple indirect taxes with a single tax.

GST has also reduced the tax burden on MSMEs by eliminating cascading taxes and providing a seamless input tax credit system.

MSMEs can benefit from GST by increasing their competitiveness, improving their cash flow, and expanding their customer base.