MSMEs to get pending GST refunds within 30 days: Nirmala Sitharaman
The Finance Minister also announced that in future, all GST refunds of MSMEs will be paid within 60 days from the date of application.
In a major relief to the MSME sector facing liquidity shortage, the government on Friday announced that all their pending GST refunds will be paid within 30 days.
Also, in future, all GST refunds of MSMEs will be paid within 60 days from the date of application, said Finance Minister Nirmala Sitharaman while announcing a slew of measures to boost growth.
The minister also said the decision on recommendations of the UK Sinha Committee regarding ease of credit, marketing, technology, and delayed payments to MSMEs will be taken within 30 days.
The government will also consider amendment to the MSME Act to move towards a single definition.
Earlier in April 2019, Prime Minister Narendra Modi said the implementation of GST has brought transparency in doing business.
He explained that there is now a control on price rises as “98 percent of things are under the 18 percent GST tax slabs.” Modi also urged the youth to think of innovative ways to develop their businesses.
Piyush Goyal, while presenting the Interim Budget earlier this year, had said that MSMEs with an annual turnover under Rs 40 lakh will be exempted from GST. The GST Council earlier doubled the exemption limit from Rs 20 lakh to Rs 40 lakh.
States will also be given the option to decide on the limit. The threshold for service provider MSMEs will continue to be Rs 20 lakh. In special category states, this threshold will be Rs 10 lakh.
Goyal also announced an interest subvention scheme for MSMEs and added that interest relief would be calculated at two percent points per annum for loans up to Rs 1 crore.
Last November, Prime Minister Narendra Modi had announced loans of up to Rs 1 crore in 59 minutes to GST-registered MSME units which would get two percent rebate in interest on new or incremental loans.
The MSME sector, which accounts for about 29 percent of the gross domestic product (GDP), is one of the largest job creators in the country.
