RBI gives fillip to the GST registrant MSMEs with the notable fiscal reforms
Indubitably, the MSMEs are today the precursors of economic development in the rapidly progressive globalized India. Very notably, the Micro, Small and Medium Enterprises account for 99% of corporate tax assessees in India. Discerning their imperative role in the proliferation of country’s economic growth and GDP as well as in its fiscal consolidation, the government has already initiated several sweeping concessional norms, alongside the considerable appropriation towards the mission of empowerment of MSME sector.
Adding to such sizeable subventions, the Central Bank has now played its vital part by proposing certain relief measures for the borrowers from MSME sector who have got GST registration.
These measures are subject to removal of credit ceilings and modification in bank rate policy in the favor of small traders, besides enhancing the mechanism for quickly redressing their grievances.
Nevertheless, the introduction of Goods and Service Tax has eased the tax structure for both tax authorities and tax assessees, the MSMEs and the startups that have gone through new GST registration process in India are facing considerable cash outflow hardship in the form of payment of Goods and Service Tax.
To remedy these setbacks, the Reserve Bank of India (RBI) has introduced certain relaxation in the favor of small entities. Remarkably, RBI has announced the removal of credit ceilings of â‚¹5 and 10 crore respectively per head to Micro, Small and Medium Entrepreneurs (Service sector) who have been classified under priority sector, that also includes Khadi and Village Industries.
These measures will indeed be a huge impetus for the potential startups. These benefits can be availed by all the startups that have undergone GST registration & possess Udyog Aadhar certificate.