Forget Big in Japan. It’s Big. In India. Now.
Small is beautiful. All our economically productive lives, we were encouraged to believe that the harbingers of India’s economic glory would be SSI/ MSME, by whatever name called.
This certainly doesn’t seem to be the vision in the GST regime. Here are some interesting operating issues brought to note in the first 3 weeks of GST:
- Procedural issues abound. Many a SME has complained about their having to pay more taxes/ fees in the new regime. Not that I am a big fan of this grumbling from the trembling.
- Next up, to avoid all of those complications involved in reverse charge, everyone is buying (or planning to buy) from a fellow “registered dealer”. Will FDI in retail still be the devil to blame for the demise of that neighbourhood Kiryana store? Come on southpaws, smack your bat around at another googly.
- Finally, small exporters. They need to either pay GST or furnish a bond (which involves a bank guarantee) to export. Which means increased working capital and costs. What if you are a start up that is exporting? What do you do? Focus on paper work? Or the service/ product? Where do you deploy scarce capital?
Therefore, it appears, GST has conveniently, and rather belatedly, created a backdoor diversion from our SSI/ MSME fixation.
Basically, big. Or, not small. Is the size to be.