Chennai, Sept. 4 -- The recent announcement about the Goods and Services Tax rate adjustments announced by the Ministry of Finance, while welcome in isolation, does not constitute meaningful reform for India's micro, small and medium enterprises (MSME) sector, said K.E. Raghunathan, National Chairman, Association of Indian Entrepreneurs.
From 5 slabs (GST) it is reduced to 4 slabs viz., 0%, 5%,18% and 40%. Let us not mistake marginal relief on select products for systemic change, Raghunathan added.
According to him, the reduction in GST on items like carton boxes, solar cookers, and specific machine parts may ease costs for a few manufacturers. "But these are product-specific tweaks, not sector-wide solutions. The vast majority of MSMEs-e...