10 Feb 2018Posted By: Mudit Handa


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.

This has unfavorably affected the cash flows of the small enterprises during this transitional period. Largely, these hindrances have come while settlement of their financial obligation to the banks and Non-Banking Financial Companies (NBFCs).

 

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 ₹5 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.

If you require any assistance regarding online Udyog Aadhaar registration or GST registration, feel free to contact us at 8881-069-069.
 

Give a Reply

Fill up the form

x
E-startupIndia Mobile App

GET E-STARTUP INDIA IN YOUR
pocket!

Download our free Android App and get realtime update on your order status.
Easily connect with our professionals handling your order over chat & mobile.
Never miss business compliances due date with advance notifications.

Get E-startupIndia in your mobile

Why Choose Us

e-startupindia member of GOOGLE

Serving business owners with an Average 4.8+ Google Rating.

e-startupindia certified #AxixBank

Trusted by Axis bank to cater its clients all licensing & compliance needs.

e-startupindia NG Alliance Partner

Providing lending solutions for business needs with NeoGrowth.

e-startupindia Google Partner

Providing business banking solutions in association with ICICI Bank.

e-startupindia member of CII

E-startupindia is a Proudly Member of Confederation of Indian Industry.The CII is a premier business association in India which works to create an environment.

e-startupindia certified #Etstartupindia

E-Startup India is duly certified under GOI's Startup India scheme and is renowned for our tech-driven solutions for business & legal services requirements for MSMEs.

e-startupindia Google Partner

E-Startup India is a Google Partner, which implies we are rigorously involved in assisting SME businesses to market their presence in the digital world.

IN THE MEDIA

  • e-startupindia South Asia's Leading Multimedia News Agency
  • Business Standard
  • e-startupindia Outlook
  • e-startupindia Htmedia
  • e-startupindia Yahoo News
  • e-startupindia New Delhi Times
  • e-startupindia India.com
  • e-startupindia IBTN9

CONNECT WITH US