Amit Mitra, the West Bengal CM’s Principal Chief Advisor, has written to Finance Minister Nirmala Sitharaman on Friday (February 17), a day ahead of the GST Council meet, urging her to call a special meeting to address challenges faced by micro, small and medium enterprises (MSMEs), people in the know told CNBC-TV18.
The GST Council is set to meet on February 18. The council is responsible for making decisions related to GST rates, rules, and regulations, and any changes to these policies require a consensus among its members. The decisions made by the GST Council can have significant implications for businesses and consumers in India.
Mitra’s letter stated that the MSMEs are facing numerous issues, including complex compliances and overregulation of GST administration.
The letter further said that the constant changes in GST rules and laws have dragged MSMEs into an abyss and overregulation and mindless compliances are hurting businesses operating in India, sources said. Also, that “genuine” MSMEs are struggling to cope with the maze of regulations, adding that these businesses cannot afford large accounting firms, and would slowly exit under fear of penalties and harassment.
On another note, earlier this week, sources told CNBC-TV18 that the GST Council-nominated Group of Ministers’ (GoM) report on taxation of online gaming, casinos and race courses is not yet on the agenda of the GST Council.
The sources added that it is possible that some states may seek the intervention of the GST Council chairman to begin discussions on the report.
In addition, the proposal for reducing the GST rate on cement is also not part of the current GST Council agenda. However, the GST Council-nominated fitment committee is expected to deliberate on the matter and present its recommendations at the next GST Council meeting.
Source from: https://www.cnbctv18.com/finance/gst-council-meeting-amit-mitra-writes-finance-minister-special-meet-msme-challenges-15968831.htm