Goods and service tax (GST) is a lump sum tax that considers all the taxes levied on the intermediate stages during production. Previous analysis suggests that there is a positive impact of GST.
This form of tax will boost up the competition level in the MSMEs. Start-ups will find it easy to do the work under the influence of GST as all the intermediated taxes that were associated before in every step are wiped off after the introduction of GST. The intermediate taxes resulted in confusion and complications and in various procedural fees, which ultimately burdened the MSMEs.
What is an E-way bill?
An E-way bill is a bill that is applicable for the movements of goods generated on the E-way bill portal that provides an E-way bill number to the supplier, receiver, and transporter. GST has successfully solved problems when it comes to transporting goods on an inter-state level. The E-way bill will predominantly have a positive effect on the start-ups related to the transportation of goods, which will eventually lead to the growth of the start-ups.
The Implementation of GST has successfully resulted in the boom of the MSME market even from the customer's point of view. It can be tempting for the customers to obtain the required product in the intermediate stage, where the tax levied is smaller than the final stage. Still, after the implementation of GST, there is no such scenario.
It further has a positive effect on the market as it helps to save time for entrepreneurs and business holders. GST's are tax neutral, which helps in erasing the scope of losing time due to border tax and toll check posts. Not only that, but it also helps to facilitate the transfer of goods across borders. Accordingly, the bill will reduce the manufacturing cost for companies that produce in bulk. Such expenses can be crucial for the survival of MSME's.
GST doesn't differentiate between sales and services. It is beneficial for the MSME markets dealing with sales and services as it will simplify the taxation procedure, thereby easing the calculation process.
The E-way bill that comes along with the Implementation of GST will result in the unification of different markets. It is possible as the bill helps to reduce the cost of doing business with other firms irrespective of any form of boundaries within the country. The removal of multiple taxes can explain this reduction in the taxes levied when transferring goods from one state to another.
What are the functions and benefits of obtaining a MSME loan?
- Introduction of a small business or firms in the market or expansion of the previously existing firm.
- Investing in the wear and tear of the already existing machines and equipment’s.
- Obtaining efficient machines, dispensation equipment, and new techniques that help improve the final product.
These loans are used for the formation of such small-scaled markets, and obviously, such huge transactions of loans require a series of procedures to be followed, these are-
- PAN Card, Aadhaar Card, voter id, driving license, etc., required for your identity verification.
- Ration card, Aadhaar Card, etc. for having information regarding your address
- Salary slips for the past six months to have a good idea of whether you are capable enough to repay the loans or not.
- Passport size photographs
- Proof of registration of the business
HOW CAN YOU APPLY?
You can apply for loans through banks or private lenders which are available both in offline as well as in online mode provided you have done your MSME registration from the official website. The difference only exists in terms of interest rates whatsoever. In both sources of obtaining the loans, the requirement of the documents as mentioned is mandatory. It is only after submitting the application form followed by the proper verification of the documents will your loan be approved and then will get transferred into your account.
So as you can see, the implementation of GST and the E-way bill has been favorable for the MSME's and hence investing in it is a very fruitful thing to do, but these require a good amount of investment. Worry not as there is the availability of MSME loans which will help you with your investment.
