New Delhi, Oct 30 (KNN) Federation of Indian Micro and Small & Medium Enterprises (FISME) President Dinesh Chandra Tripathi made an elaborate presentation on the challenges Micro Small and Medium Enterprises (MSMEs) are facing in adopting Goods and Services Tax (GST), to the Group of Ministers (GoM).
The GoM was constituted during the last meeting of the GST Council against a backdrop of slowing down of the economy and sudden drop in GST returns.
The Committee headed by Mr. Himanta Biswa Sarma, Assam finance minister, recently held meeting with the representatives from the MSME sector for a first hand feel of the problem.
Besides the Assam finance minister other Ministers on the Group are Bihar deputy chief minister Sushil Kumar Modi, Jammu and Kashmir finance minister Haseeb Drabu, Punjab finance minister Manpreet Singh Badal and Chhattisgarh minister of commercial taxes Amar Agrawal.
Tripathi in his presentation highlighted the structural barriers like problem of invoice matching for input tax credits to the GoM.
FISME President also requested the GoM to advise waiving of conditions like C forms for transition credit, upfront GST on Advances etc.
On the whole the Group of Minister recognised the problems MSMEs are facing and assure necessary recommendations to the GST Council.
GST Council the apex body for policy decision will meet in the next week to deliberate on the suggestions of the GoM.
At the last meeting the Council decided to allow some relaxations in compliance for MSMEs, particularly regarding the micro sector.
At the meeting with the GoM, representatives of MSMEs like LUB and CODISSIA requested the committee to streamline the composition scheme for micro enterprises with single tax and eligibility for Job Workers.
While the focus of the committee may be liberalisation of the Composition scheme and problems of small eateries with GST, MSMEs are looking at the GoM to take a comprehensive view on compliance related issues.
The Committee had a patient hearing of issues raised and subsequently discussed the way out for MSMEs with the officers of GST Secretariat.
Manufacturing MSMEs particularly, are also facing the problem of blocking of almost all working capital in upfront GST paid, due to the long delay in payment of invoices, particularly by large buyers.
With state ministers who are prime movers of the GST as members of the GoM, the MSMEs are eagerly looking forward to for a comprehensive policy package recommended by the Group. (KNN/DB)