The Hon’ble Finance Minister has released GST MSMEs Booklet dated July 01, 2019 for MSMEs Sector. The Booklet contains Part-I: GST overview and Part-II includes the major decisions have been taken by the GST Council in various meetings held so far for the benefit of the MSME sector and FAQs also provided on MSMEs query regarding GST.
As per the MSME Ministry, there are over 63 million MSMEs in the country engaged in manufacturing, services, and trade, more than half of which are in rural areas. These enterprises account for about 110 million jobs and contribute about 29% of the country’s economic output, as per the National Sample Survey (NSS) 73rd round conducted during 2015-16. The MSMEs role in employment creation and development of the economy makes it a priority for the government to make it easier for them to do business and comply with regulations. In recognition of the same, relief to this sector in GST laws, procedures and rates have been a priority area.
To survive an uncertain market scenario and compete with large and global enterprises MSMEs need to be supported and assisted to ensure sustained growth and development of these enterprises in the existing competitive arena. In terms of GST, the compliance in terms of time, cost as well as energy is much higher for MSMEs vis-à-vis the bigger companies. This impacts them much more as compared to the bigger companies. Therefore, some relaxation benefits are necessary in order to help them cope with a sudden increase/change in compliance challenges.
Complete Booklet can be accessed at: http://www.cbic.gov.in/resources//htdocs-cbec/gst/GST_MSMEs_Booklet_01072019.pdf;jsessionid=AA8BBDCA355C0E5A7108A4C2F553864A