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Government Offers Subsidy for Cloud Computing Adoption after GST Implementation

The legislature has proposed subsidy up to Rs. 1 lakh for micro and small enterprises to urge them to utilize cloud computing for information and correspondences innovation applications. In cloud computing, MSMEs utilize the Internet to get to regular and in addition tailor-made IT infrastructure, including software, for managing the business. The subsidy will be given on client charges to two years. The recommendations are a piece of the altered guidelines of the plan for ‘Advancement of Information and Communication Technology in MSME Sector’. The subsidy dispensed will be through direct advantage exchange course. MSMEs initially will make a full installment to the specialist organization. The office of the development commissioner MSME will dispense assets to Telecommunications Consultants India Ltd (TCIL), which in turn will exchange it to the account of MSMEs.

Read Also: Impact of GST on SMES and Startups

In the MSME ministry guidelines, a clear cut statement was given as, “The benefits that accrued through implementing information and communications technology (ICT) during subsidy period in their enterprises will motivate MSMEs to continue to use the ICT application with their own expenses after this period.”. “It has been observed that MSMEs are generally not availing of the benefits of ICT application and cloud computing for the promotion of their business. Therefore, it is proposed that MSMEs be sensitized regarding the benefits of ICT, including cloud computing application for business promotion, at a cost of Rs. 5 crores,” it added

Cloud computing administrations will be given in two classes. Under the primary, greatest subsidy of Rs. 1 lakh per unit will be dispensed more than two years to micro and small enterprises. In the second category, benefits through the cloud at much lower cost will be offered to the envious micro, small and medium enterprises. The subsidy will be at the cost of utilization administrations, which will be shared by the central government and the micro and small undertaking units availing of it. The aggregate spending expense in the plan for this action is Rs. 69 crore with the Center’s commitment of Rs.41.40 crore for a long time. MSMEs should apply to the specialist organization and place their demand on the official website or the national entryway for taking the advantage of subsidy.

Source: http://www.thehindubusinessline.com

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Published by Subodh Kumawat
Subodh has done with numerous professional degrees ranging from Human Rights to Banking along with MBA in HR Marketing. He is also interested in the field of tax-related articles and blog as per the industry based norms. Having expert knowledge in diverse sectors, he assures facts and figures along with testimony, in his articles. Working in SAG Infotech, he is a trusted author among the readers globally. View more posts
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