GST Reform- How SMEs can use this opportunity for better businesses

9 December 2016 5 MIN READ

Restructuring Goods and Service Tax (GST) in India is the biggest change that will bring all the unorganized sectors under a uniform tax base as well as improve growth opportunities for the organized sector.

The Small and Medium Enterprises (SMEs) sector is typically the main segment that gets affected and requires attention and handholding to survive and succeed through change as large as the one GST promises to be. As compared to large organizations, SMEs may not have strong enough in-house financial and taxation expertise. Moving to a completely new taxation system while beneficial in the long run may proof to be daunting for them. For SMEs who have a certain minimum scale of business using SAP tools targeted at SMEs for GST rollout may make the transition smooth.

How SMEs can benefit from GST?

GST is expected to benefit all businesses in India and SMEs can celebrate for the following reasons:

Ease of commencement of business

A new business needs to go through lot of formalities, such as VAT registration from sales tax department. There are different procedures and fees in different states. GST will bring uniformity in process and centralized registration that will make starting business and expanding in different States much simpler.

Simple taxation

The current system consumes lot of time and energy to manage different types of taxes at different stages. Adhering to diverse regulations at different states make it more complex. Post GST the complexity, efforts, and costs will come down for the SMEs.

Relief for business both in sales and services

The best example will be restaurants, which fall under sales as well service taxation and where VAT and service tax both items are calculated separately. The calculations process becomes very complex. GST will not differentiate between sales and services, and thus the tax calculation will be done on total, which will be a big relief for everyone including SMEs.

Reduced logistics cost

Toll tax, small border tax, check posts are the key reasons, which might affect the delivery of goods on time. GST can eliminate all these hindrances and will make interstate movement cheap. It also means that SMEs can plan to setup warehouses based on lower cost, better connectivity and not worry about how many levels of tax need to be paid. It may lead to consolidation of warehouses.


SMEs can use this opportunity to reduce costs, increase revenues. There is a transitioning phase, but ERP software from SAP and many other providers can help SMEs to overcome the transition phase smoothly.

About the author

Nidhi Batra

Nidhi Batra is a brand communication specialist at Uneecops. She is an active contributor to SAP Business One community and loves to write on smart and intelligent technology which is redefining business models such as SAP Business One, SAP Cloud, Tableau and Power BI. Having Master’s in English from Delhi University, she follows Gartner and spends her time reading avidly about Artificial Intelligence, SAP HANA, Cloud, DevOps, IoT, robotics and business automation.. Tweets at @nidhi_niya

Similar posts

Enterprise Resource Planning (ERP)

Streamline your business processes and improve productivity using our cutting edge ERP solutions & service offerings custom built for small and medium enterprises.

Industry Solutions

  • Industry-specific solutions to help your business run better. From Pharma, F&B to Retail and more, we have a solution that caters to your industry.


  • Custom designed and quality certified 12+ Add-Ons for SAP Business One that help you solve unique business challenges with ease

Web & Mobility (E-Governance Solutions)

Our e-Governance solutions enable the government to reduce operational complexities and help citizens, businesses & government bodies to leverage technology to access public services with ease.

E-Governance Services

Our Portfolio

  • Browse through our portfolio of e-Governance services and move to digitally smart governance with Uneecops.


  • Educational ERP with enterprise-grade functionality designed specifically for educational institutes, colleges and universities.


  • Drive rapid digital transformation across your Government departments and agencies with established and next-gen technologies.

Our Products

Our products portfolio comprises of business automation software’ that helps you focus on high-value tasks and improves organizational efficiency by automating repetitive human tasks, process workflows, data capture & decision making.


  • India's most popular HR automation software for managing the entire employee lifecycle from hire to retire. Trusted by 300+ companies across 18 industry verticals.


  • A complete end-to-end Campus Management Software which automates various aspects and functions of educational institutes, colleges and universities.


  • High-quality SAP certified industry-specific Add-Ons designed to integrate seamlessly with SAP Business One and cater your unique business needs.


Get actionable business insights with our cutting edge BI products & consulting services. Make informed decisions and improve business efficiency with real-time analytics.

BI Services

  • End-to-end business intelligence services ranging from BI consulting, Data Visualization to Dashboarding & more that help you make informed business decisions.

Dashboard Services

Our Work

  • Browse through our portfolio of BI clients and know how we are offering strategic value to them with our assortment of BI services.