1 Trillion INR Package for MSME
The government is working on a 1 trillion INR package for aiding the MSME sector. In addition to this, the GST refunds and the change in definition of MSME are to be expedited.
About the Package
The Union Minister of MSME announced that the government is working on a 1 trillion INR package for MSME sector to improve the liquidity. It is to be a revolving fund and its insurance will be paid by the government. The initiative is currently awaiting approval from the PM.
The government is to expedite the tax refund and GST refund processes. The refunds are to be fast-tracked and paid within 8 days of filing returns. A GST refund is paid when the GST paid by the enterprise is higher that its GST liability. The time limit for claiming refund is 2 years.
MSME Definition Change
The Minister also announced that the definition for MSME is to be changed. The new definition seeks to replace the current definition that depends on self-declared investment on plant and machinery. The proposed definition is reliant on the enterprises’ annual revenue. The change is expected to better align the enterprises with the GST regime and improve the ease of doing business.