Over the last two years, 50,000 small and medium industries have shut shop in Tamil Nadu and around 5 lakh people have lost jobs due to the cash crunch after demonetisation.
GST Hurts SMEs, Even Though They Don’t Fall Under GST
While enterprises with a turnover less than Rs. 20 lakh need not sign up for GST, many entrepreneurs say big companies engage only with those who register for the central tax.
The system, they say, also pushes them towards the wall due to mandatory monthly GST payment or penalty though their customers pay them only two to three months later.