Opinion | Solve the tax problems of small firms to achieve economic goals
An optional reverse charge mechanism could offer relief to small and medium enterprises in India
About a month ago, this newspaper carried an article titled, “Fear and loathing in India’s small factories" (29 January 2020). Specifically, the article said that micro, small and medium enterprises (MSMEs) find it difficult to make goods and services tax (GST) payments within 20 days of raising an invoice when they get payments from their buyers after 90 days, and, even then, only partially.
GST payment obligations have made the perennial working capital problem of small enterprises even more acute.