ASSOCHAM Represents MSMEs for Stimulus Packages & GST Relief

The 21 days lockdown announced by the Prime Minister on 24 March 2020 has been extended now till 3 May 2020 looking at the increasing cases of corona positive patients in India. Not only India but the entire world is struggling with COVID-19 crises and the government of every country is coming up with possible solutions to eliminate this pandemic from the grounds of their respective nations. India is no exception and therefore the government has decided to extend the lockdown until the situation revives and it is safe to again have public gatherings in markets, complexes, malls, etc.

Not much to surprise but the COVID-19, with the threat to health has also given us the economic torn down. India is also suffering from the huge financial crises, loss to the business, a stagnant market, null exports/imports, etc. World Bank predicted India’s growth rate to be in-between 1.5% to2.8% whereas the International Monetary Fund (IMF) has estimated the growth to touch 1.9% looking at the impact of the pandemic on the economy of the nation.

The country holds more than 65 million Micro, Small and Medium Enterprises (MSMEs) View the impact of GST law on startups and SMEs (small and medium enterprises) in India. The tax will provide great relief to these companies (experts reveal). Read More and they all together contribute to the economic stability and progress of the nation. Due to the prevailing crises in India, the segment is in urgent need of relaxations and concessions from the government that would give them some ease in the middle of the crises. Concessions can be in the form of relief packages, capital loans, fixing of supply chains that are already disputed and detached with others. MSMEs not only contribute significantly to the GDP of the country but also offer jobs to more than 30% of the employee accumulation in the country. Such a big sector shall not be excluded when it comes to giving out reliefs.

According to Niranjan Hiranandani, President of Associated Chambers of Commerce and Industry of India (ASSOCHAM), the association brings in the entrepreneurial skills of the businesses and combines them with the expertise of the professionals to make progress and establish itself a Chamber with a difference. They have 4,50,000 MSMEs registered Get to know the brief guide of MSME registration process in India with key benefits. Also, we mentioned Indian government schemes those catering MSMEs. Read More. He further exclaimed that they are concerned about the setups and that they are the crucial elements for the economy of the country.

They had sessions of discussions with the Prime Minister and Union Finance Minister stressing on the purpose of extending the stimulus packages for the MSMEs. Such packages include restructuring of loans and non-performing assets (NPA) of the companies. The association has cordially requested for financial packages that will give an additional working capital to the MSMEs that is crucial for them to reverse their original essence.

SBI has agreed on the fact that MSMEs need up to 10% working capital for which they can apply to any local bank or local regional bank and get the 10% incremental value of their loan. However, the similar relief is not extended for the non-banking financial companies (NBFCs) but they have appealed for the same to the FM as MSMEs are more concerned about the NBFCs than Banks. MSMEs that are into production are likely to resume their activities soon. The recommendation has been sent to PM and FM on 11 April and we are hopeful that within a day or two those will be accepted following which the MSMEs will be in a better position to start with their manufacturing units, said, Niranjan Hiranandani.

Niranjan Hiranandani further revealed that they are asking for a 50% sabbatical of GST (Goods and Services Tax) so that the demand side of the economy should raise. The relief has been demanded not only in GST but also in Income tax refunds Simple steps to claim and know the status of income tax return refund online on government income tax website. Find the full process enclosed with the article. Read More – the refunds should immediately be granted to MSMEs so that they can accelerate with their businesses also the clearing of pending dues is also demanded for a long period of time in order to release them with the burden of payment. Niranjan Hiranandani says, they are representing the MSMEs segment and are hopeful of getting the relief and concessions that will certainly revive the sector and help it bring in more employment opportunities in the country.

He further declared that the health and wellbeing of the residents come in the first place. In the meantime, they must have the stimulus package with the supported by RBI, liquidity might and the Goods and Services Tax (GST) should be reduced. We need to improve and invest in the infrastructure in India and as soon as the lockdown ends we are already on the path of recovery but if they deny the stimulus packages to Micro, Small and Medium Enterprises (MSMEs) Micro Small and Medium Enterprises (MSME) is surely hidden from the limelight but is the core of economic growth in the nation. The sector lacks recognition. Read More then the development is not going to be easy.

Coronavirus has threatened the world with its terrific nature and potential to spread in the air but for now, we have no other choice than to fight with the pandemic and keep ourselves and our families safe. As far as businesses are concerned, we must look for the ideas to pump in new opportunities and the other part will be taken care of by the government.