The 29th GST council meeting has discussed various significant issues related to the MSME sector. The small industries are continuously approaching the finance ministry for the resolution of their issues which has been discussed in the GST council meeting.
In the meeting, all the talks were based on the MSME sector as the sector forms a huge portion of Indian industry background. Certain issues like threshold limit for registration, input tax credit claim and reverse charge mechanism prevails in the MSME sector for a long time due to which multiple ministers have called the council for a resolution.
After the completion of 28th GST council meeting, there were a lot of decisions pending from the council. Most of the industries are knocking the doors of the finance ministry for the reduction of tax rates and ease of compliance, so here are some of the major points of discussion of 29th GST council meeting:
Major Discussion of 29th GST Council Meeting for MSME:
Cashback on Digital Payments
The GST council has decided to offer 20 percent cashback of GST paid on the transactions based on business to consumer (B2C) done by the means of BHIM, RuPay, Aadhar, UPI and USSD.
The government will develop the software with the help of NPCI to process the cashback. However, the council has also made a cap of INR 100 on the cashback amount.
The council also approved a 6 member ministerial panel head by State of minister for finance Shiv Pratap Shukla to look through the matter of MSME sector.
No decisions were taken on the rate cut or rate rationalization still. Also, there was no discussion on the GST return filing form simplification either.
