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SMEs want new government to immediately implement GST
The up coming Lok Sabha election has raised new hopes in corporate and business sectors. The new government going to be formed in mid 2014 will come with a new basket of offers in all sectors including small and medium entrepreneurs (MSEs).

Most of SMEs with dreams in their eyes, expect the Goods and Service Tax (GST), the proposed tax reform that seeks to replace all the indirect taxes like central sales tax, state-level sales tax, excise duty, service tax and value-added tax (VAT) with a single and uniform tax rate across the country, will come to reality. Their efforts to implement GST has missed several deadlines till now. 

According to a SME Times report while unfolding SMEs' problems, MD of Impex Appliances Ltd., Dinesh Garg said, "We are expecting that there should be a common tax system, which is batter for us. Because right now we have different taxes and if a common tax system will be there it will definitely help us more.”

The present tax system promotes different pricing in states and competition in the domestic market. The proposed tax system will help and prompt a smooth business across the country and we are expecting this from the new government, Garg added.

When a manufacturer is sourcing his raw materials from one state and his clients too mostly are in the same state the present tax system is right. But, when he/she collects raw materials from one state to other, he/she has to pay 2 percent central sales tax (CST) on it and when he transports the finished product back into his state, he has to pay another 2 percent CST on it.

But the GST is a tax reform that seeks to create a common market for all goods and services across India. It has long been delayed only because the difference between states and center tax compensation design.

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