MSMEs to benefit from cheaper inputs, easier GST compliance

The dawn of a twin-rate goods and services tax system (GST), along with easier registration, compliance and refunds, is expected to make a wide range of raw materials cheaper, providing a major stimulus for India's sprawling micro, small and medium enterprises (MSME) sector.

- Manas Pimpalkhare

The GST Council approved a series of key decisions on Wednesday, in the biggest overhaul of the indirect tax system since its inception seven years ago.

Finance ministry officials said the reforms are likely to benefit the country's 66 million MSMEs with lower input costs and expedited registrations and refunds, potentially boosting these firms' export competitiveness.