{"id":15194,"date":"2020-10-19T19:10:34","date_gmt":"2020-10-19T13:40:34","guid":{"rendered":"https:\/\/www.instamojo.com\/blog\/?p=15194"},"modified":"2020-10-29T15:05:48","modified_gmt":"2020-10-29T09:35:48","slug":"3-important-msme-expectations-from-indian-government-to-get-back-to-business","status":"publish","type":"post","link":"https:\/\/www.instamojo.com\/blog\/3-important-msme-expectations-from-indian-government-to-get-back-to-business\/","title":{"rendered":"3 Things MSMEs Want from Indian Government for Post-COVID Recovery"},"content":{"rendered":"

MSMEs are slowly getting back to business. A little aid from the Government can help the backbone of the Indian economy straighten up faster. We explored some MSME expectations from the government for faster recovery from the COVID effects.<\/b><\/p>\n

\n

A study(financialexpress) shows that MSMEs have the potential to add $300 billion to the GDP by 2025<\/strong>. Experts believe that although the GDP has dropped by 8% now, it can be revived quickly if the government:<\/p>\n

    \n
  1. Actively regulates demand generation market-access platforms<\/li>\n
  2. Monitors export and import activities within and outside India.<\/li>\n
  3. Works with the private sector to maximise SME reach and provide ease of digital access.<\/li>\n<\/ol>\n

    But what are MSME expectations from the Government?<\/p>\n<\/blockquote>\n

    3 things Indian MSMEs want from the Government:<\/strong><\/h2>\n

    Defer\/remove income tax and pending loans<\/strong><\/h4>\n

    As per the latest update by The Hindu, MSMEs expect the Government to significantly reduce or defer income tax filing to the next fiscal year. Small businesses earning less than \u20b915 lakh revenue want income tax to be abolished completely.<\/p>\n

    Furthermore, MSME expectations include exemption from GST for businesses with less than \u20b95 crore turnover, up to March 2021. This comes in effect after the Government asked states to accept GST compensations funds as loans, which left MSMEs in a fix.<\/p>\n

    Extend credit guarantee lending schemes with banks<\/strong><\/h4>\n

    Since the COVID pandemic made waves in India, the government issued emergency credit line schemes via banks all over the country.<\/p>\n

    However, Financial Express stated that the Government may not extend the \u20b9 3 lakh crore emergency line credit scheme for MSMEs beyond October, although only 65% of the sanctioned amount has been distributed via banks. For the small business owner, this could come at a bad time during the festive season.<\/p>\n

    Why? MSMEs need to re-start logistics and capital expenditure.<\/strong> For this, they want the Government to help provide easy access to special fast track loans for capital equipment purchase at a 5% interest rate and 2-year moratorium.<\/p>\n

    Also read: 3 Signs that prove businesses are back on their feet for festive season<\/a><\/span><\/h5>\n

    Ease of compliance<\/strong><\/h4>\n

    On October 1st, the Government made it mandatory for business with a turnover of over \u20b9 500 crores<\/a><\/span> to generate e-invoices and maintain GST filing.<\/p>\n

    For a lot of small businesses, this may come as a sigh of relief, but the government still expects MSMEs to adhere to strict compliance rules and regulations, which many MSMEs are not familiar with.<\/p>\n

    The Government is working on easing compliance for MSMEs with renewed GST rates.<\/p>\n

    \n

    Been an advocate of GST for many years.Without it, India will never possess its own \u2018Common Market.\u2019 In order to coax small businesses to enter the ecosystem,we need Simplicity & Ease of Compliance. Glad the govt.is showing willingness to keep tweaking till that goal is reached https:\/\/t.co\/bUiXauaMTd<\/a><\/p>\n

    \u2014 anand mahindra (@anandmahindra) November 11, 2017<\/a><\/p><\/blockquote>\n