Voice of SMEs

GST a comprehensive indirect tax system is just a month away from rollout. The new law is expected to help the overall growth of economy and a softening in prices and may even translate into a 2 percent GDP growth, according to experts.

With a new wave in the Indian economy, every business is looking forward with lots of anticipation and hope to be able to reap its benefits. So we thought, why not ask the experience of SMEs and understand, how they are dawning the armor for the real impact?

Crest Capital Advisors (CCA) is a part of Crest Capital Group Private Limited (CCG) being an independent Valuation, M&A Transaction Advisory & Management consultancy firm since 2004. Crest Capital Advisors is a leading boutique investment bank with global networks capitalizing on its deep domain knowledge and practical expertise exceeding client’s expectations by delivering innovative solutions besides integrity and commitment.

Reaching out to them we posed a few questions to the CEO and Business head Mr. Gagan Ghai, as to how CCA in its journey has experienced the raising of funds and how the firm is planning to manage GST’s effects on its Working Capital.

Answering all our questions, he said “When I started my journey as an entrepreneur, I thought the most precious resource was money, but it's actually time. In the beginning itself, I thought chasing after capital would distract me from building the best product. So, rather than sweating on the investment game, I had spent two years holding down a day job while bootstrapping my new company on the other side.” Further adding on to whether they have adopted any strategies in relation to GST implementation, he replied, “I don’t think so there can be any strategy, however we too are looking for solutions and trying to understand how to implement when it runs. As per budget papers, tax rates on goods for businesses will be @25%.”

Working capital is the life line of any business to carry out day to day operations, hence managing the working capital efficiently might pose an issue for various SMEs. Mr Ghai adding on to his companies plan regarding generation of working capital said, “I think so we will have to be more conscious while invoicing. Input tax credit and managing vendor with complete transparency can be solution for same”. Talking about the long terms benefits his business can reap from the implementation of GST, he mentioned “That Standardization, avoiding delicacies and Rationalization of all taxes to one will be greatly beneficial.”

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