On Feb 1, 2022, Finance Minister Nirmala Sitharaman would announce Union Budget 2022-23 MSMEs are urging the government to seek the recovery of the sector GST reduction, relaxation in compliance, discuss the problems of late payments and simplicity of the access to capital.
It is to be urged by the central government to focus on the MSME sector to enhance economic growth. The same would arrive in funding assistance to NBFCs to maintain liquidity and expand financially via tracking the MSME sector. GST exemption would help to waive off a load of compliance for MSMEs.
Only 22% of the application have either refused or reconciled mutually 21% of applications canceled and 57% of applications are beneath the process of considering or view by the department.
He also requested to simplify the access to capital mentioning that the government must opt for the actions to optimize the fund of funds scheme immediately. He even recommended making the export infrastructure stronger.
“Exporters should be incentivised to use business information portal since the probability of a firm exporting to new markets increases by around 0.1% with each additional day of time spent on such portals,”
“Tax experts also specified that TDS has been a point of concern across the industry. Currently, a TDS of 10% assumes profitability of 40% which is generally not the case for corporations. With a major chunk of capital being held back in the form of TDS, maintaining big cash flow becomes a challenge. SMEs find it challenging to secure loans as most of their money is blocked by the government in the form of TDS. In my experience, the TDS needs to be trimmed down to 7.5% for all whereas for SMEs it should be further reduced to 2.5%.”
GST refund issues would often take place among the exporters. The existing procedure of obtaining and refunding takes towards the more and more cash flows problems for the industry. The government must amend the current GST refund timeline and appoint the automatic process refund within 45 days of furnishing the request. Also fixing a date on the refunds would assist the companies to align as per that.
“As we are going through another wave, this is an indication of how important Atma Nirbhar Bharat is. To boost Indian manufacturing and MSMEs, we need a stable GST tax slab. No product should be above the 18% slab, and they must now encourage consumerism in order to improve market sentiment. a tax expert commented.”
“He also specified that By doing this, India could become the world’s third-largest market for television. The market size could grow by 15% each year, reaching 16 million units. We urge the government to not change any customs duties for the time being, as the industry is moving towards stable conditions,”
