Union Budget 2021-22 Expectations for MSMEs: In order to encourage MSMEs to leverage specialist services for organization development, the government must minimize the GST price on most of the specialist services from 18 per cent presently to 5 per cent, Chandrakant Salunkhe, President, SME Chamber of India and Startups Council of India told TheSpuzz Online. Services presented by legal experts, chartered accountants, architects, courier services, management consulting and services which includes HR, advertising and marketing, provide chain management, hosting and IT infrastructure provisioning, upkeep, repair and installation services, and so forth. attracts 18 per cent GST.
Amid the newest move by the government with respect to GST, the Central Board of Indirect Taxes and Customs had in December 2020 had notified that enterprises with more than Rs 50 lakh in month-to-month turnover will be levied at least 1 per cent of their GST liability in money as it looked to address the situation of fake invoicing. “With every passing day, GST laws are becoming more draconian instead of being simplified. The time limit of allowing GST registration has also been increased with a requirement of physical verification of office address by the GST officer. GST officers have also been provided additional powers to cancel GST registration in several cases,” Alok Patnia, Managing Partner, TaxMantra Global had written in TheSpuzz Online on Wednesday. The 1 per cent GST liability, even so, would not be applicable not apply for firms whose managing director or companion have paid more than Rs 1 lakh in earnings tax or has got more than Rs 1 lakh in refund in the preceding monetary year for unutilised input tax credit.
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Among other crucial ideas produced by Salunkhe, who has more than 90,000 MSME members at the SME Chamber of India, was that the collateral-free of charge loan limit must be enhanced by the government to Rs 5 crore for micro-units, Rs 15 crore for modest corporations, and Rs 35 crore for medium corporations. “This will lead to better utilization of money available with banks and needy businesses will benefit,” he added. Under the CGTMSE scheme, which gives credit assure to monetary institutions to provide collateral-free of charge loans to modest corporations, the government had enhanced the loan disbursal limit from Rs 1 crore to Rs 2 crore, former MSME Minister Giriraj Singh had stated in February 2019, according to a statement by the ministry.