The implementation of Goods and Service Tax (GST) has brought both advantages and disadvantages for every sector.
SMEs are one of such sectors which has also come under the same. GST advantages and disadvantages of SMEs are several, with in-depth repercussions and require a complete understanding for every individual.

One of the most important benefits is the tax exemption system and slabs. SMEs with a turnover of Rs. 40 Lakh or less are exempt from paying any income tax.
Also, businesses now enjoy more comfort when it comes to registration. They can now register themselves online to operate across more than one state.
SMEs with a turnover of Rs. 1 Crore or more come under the GST Composition Scheme. Under this scheme, they only have to pay minimal income tax.
Further, Goods & services tax has replaced the cumbersome taxation structure across states with a single superstructure, easing the pressure on logistics for SMEs as well as the whole industrial sector.
Lastly, the Goods and services tax has eliminated entry tax which businesses had to pay to export their goods to other states.
SMEs also have to pay higher operation costs to employ new professionals and train their employees.
Also, they have to purchase new accounting software as the traditional ERP software that SMEs used was compliant with the old tax regime.
The Government is yet to notify all the rules and regulations of GST.
These are 4 top advantages and disadvantages of GST for SMEs in India which affect the operations of SMEs.
Here are some other useful blog posts: