To prepare micro, small and medium enterprises (MSMEs) for migration to the new goods and service tax (GST) system, YES Bank along with Yes Global Institute has launched a tailor-made programme for MSMEs.
The private sector bank has initiated the programme on the back of its findings of a nationwide survey, which showed that one in every two MSME owners is not aware of the impact of GST on their businesses and nine out of 10 MSME owners are not fully aware of the changes needed to comply with GST.
Referring to the survey, Rajat Mehta, Senior President & Country Head, Brand & Retail Marketing, said: “Fifty per cent (of the MSME customers) will contact their bank for further guidance, and three out of four MSME owners expect their banks to guide them on GST.”
The primary source of information for MSMEs are their Chartered Accountants, Business Associates and media.
Sumit Gupta, Group President & National Head – Business & Rural Banking, said “Our bank has partnered with Cleartax, an e-filing income tax return portal, for expert guidance on updates on GST for creating awareness; business segment-specific impact; business cost and working capital (tax amount, service costs & charges, filing costs, time investments); and business processes (invoicing, book keeping, collaboration, GST scores).”
The bank has set up a dedicated phone number for MSMEs to address their queries on GST.
Gupta elaborated that his bank has launched GST-ready products for MSMEs such as GST ready current account in partnership with Numberz (a fintech startup), and Cleartax, and GST ready Invoicing and cash management solution.
“Considering that the working capital cycle is expected to change from quarterly to monthly, a ‘GST Ready Working Capital Management’ product will be made available,” he said.
To spread awareness among MSMEs about GST, Mehta said YES Bank is organising various knowledge-based events in partnership with the National Small Industries Corporation (NSIC), Federation of Indian Export Organizations (FIEO) and Federation of Automobile Dealers Associations (FADA), among others. The bank aims to reach out to 1 million MSMEs through this programme over the next six months.
“A ready reckoner on on GST is being made available at all YES Bank branches.
“The bank has also introduced Yes GST Learning Series for their 20,000 plus employees, to induct them into the transformational tax regime the country is about to undergo,” he said.