Chennai: The slowdown has hit the Micro Small and Medium Enterprises (MSMEs) the most across different sectors. Hence, addressing issues related to MSMEs and improving their liquidity situation was a priority for the Finance Minister while making announcements to revive the economy.
As the Finance Ministry has been receiving several grievances related to GST, the minister tried to assuage some of the concerns. The request for GST refunds from MSMEs henceforth will be cleared within 60 days of intimation. Further, all pending GST refunds due to MSMEs shall be paid within 30 days.
The FM also said the decision on recommendations of the UK Sinha Committee regarding ease of credit, marketing, technology and delayed payments to MSMEs will be taken within 30 days. The MSME sector accounts for 29 per cent of the GDP and is a large job creator.
Banks will issue improved one-time settlement policy to help MSME and retail borrowers settle their overdues. This will help increase transparency, reduce harassment and assist in improving turnaround time for customers, she said.
Further, the FM said GST filings would be simplified with lesser number of forms. She will also hold a meeting even with GST network officials on Sunday to plug loopholes in the GST refund process.
The Finance Minister also wanted a new definition for MSMEs. The government will amend the MSME Act to have a single definition for MSMEs. The changes in the act will be taken up by the Cabinet soon.