Lok Sabha Question No. 344 (UNSTARRED), answered on 2018-02-05
Subject: Assistance to MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: PREM SINGH CHANDUMAJRA, P. KUMAR, BHOLA SINGH, MANSHANKAR NINAMA, HARISH DWIVEDI

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 344 TO BE ANSWERED ON 05.02.2018

## ASSISTANCE TO MSMEs

834.   PROF. PREM SINGH CHANDUMAJRA:

SHRI P. KUMAR:

SHRI BHOLA SINGH:

SHRI MANSHANKAR NINAMA:

SHRI HARISH CHANDRA

ALLAS HARISH DWIVEDI:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) whether the Government is implementing/proposes to implement any scheme to provide assistance in the form of a relief package, subsidy and other benefits to the Micro, Small and Medium Enterprises (MSME) sector in the country?
- (b) if  so,  the  details  thereof  including  the  MSMEs  being  covered  /  proposed  to  be covered under the scheme and the nature of assistance likely to be provided thereunder; and
- (c) the salient features of the composition scheme for the MSME sector?

## ANSWER

MINISTER OF STATE (INDEPENDENT CHARGE) FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI GIRIRAJ SINGH)

(a)&(b):  Ministry  of  Micro,  Small  and  Medium  Enterprises  is  implementing  a  number  of Schemes/programmes providing subsidy and other benefits to the Micro, Small and Medium Enterprises (MSMEs) in the country. These includes:

1. Prime Minister's Employment Generation Programme (PMEGP)
2. Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
3. A Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship (ASPIRE)
4. Interest Subsidy Eligibility Certificate (ISEC)
5. Workshed Scheme for Khadi Artisans
6. Market Promotion Development Assistance (MPDA) Scheme
7. Khadi Reforms Development Programme (KRDP)
8. Coir Vikas Yojana
9. Coir Udyami Yojana
10. Coir S&T Scheme
11. Public Procurement Policy for Micro and Small Enterprises (MSEs)
12. Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE)
13. Credit linked Capital subsidy Scheme (CLCSS)
14. Marketing Assistance & Technology Up-gradation (MATU) Scheme
15. National Manufacturing Competitiveness Programme (NMCP)
16. Financial Support to MSMEs in Zero Defect Zero Effect (ZED) certification Scheme.
17. Technology Centre Systems Programme (TCSP)

18. Micro Small Enterprises - Cluster Development Programme (MSE-CDP)
19. Performance and Credit Rating Scheme
20. Assistance to Training Institutes
21. Marketing Assistance Scheme and Public Procurement Policy, 2012, Which was made     mandatory from April 2015.
22. International Cooperation Scheme
23. National Scheduled Caste and Scheduled Tribe Hub
24. Digital MSME Scheme.

In addition, the following institutes are also working for the development of MSMEs:

- i. The National Institute for Micro, Small and Medium Enterprises (NIMSME) conducts training and capacity building programme for Development of Micro, Small and Medium Enterprises in India.
- ii. Mahatma  Gandhi  Institute for Rural Industrialization (MGIRI)  is promoting innovation,  quality  and  productivity  to  make  rural  products  competitive.  MGIRI conducts technology dissemination workshops/seminars for entrepreneurs.
- iii. National Small Industries Corporation Ltd (NSIC) is providing comprehensive support to MSMEs through Marketing, Technology and Credit Support services.
- iv. Khadi & Village Industries ( KVIC) is entrusted with the task of providing financial assistance  to  institutions  and  individuals  for  development  and  operation  of  Khadi and village industries and guiding them through supply of designs, prototypes and other technical information.
- v. Coir Board is providing support to the promotion and development of Coir Industry as well as export market of coir and coir products in India as a whole.

As per the MSMED Act, 2006, the following units are classified as the MSMEs

| Manufacturing Sector   | Manufacturing Sector                                  | Service Sector     | Service Sector                                       |
|------------------------|-------------------------------------------------------|--------------------|------------------------------------------------------|
| Enterprise             | Investment in Plant& machinery                        | Enterprise         | Investment in equipments                             |
| Micro Enterprises      | Upto Rs.25 lakh                                       | Micro Enterprises  | Does not exceed Rs. 10 lakh                          |
| Small Enterprises      | More than Rs.25 lakh but does not exceed Rs. 5 Crore  | Small Enterprises  | More than Rs.10 lakh but does not exceed Rs. 2 Crore |
| Medium Enterprises     | More than Rs.5 crore but does not exceed Rs. 10 Crore | Medium Enterprises | More than Rs.2 crore but does not exceed Rs. 5 Crore |

Direct  subsidy  is  provided  under  major  scheme  of  Credit  Linked  Capital  Subsidy Scheme, Marketing Development Assistance Scheme, Digital MSME Scheme, Technology Upgradation,  Interest  Subsidy  Eligibility  Certificate  Scheme  (ISEC),  Quality  Certification Scheme (TEQUP) and Prime Minister's Employment Generation Programme (PMEGP).

## (c): Salient features of Composition Scheme for MSME Sector. Benefits to the MSME Sector under Composition Scheme as regards GST are as below:

- i. Increase in aggregate annual turnover threshold for eligibility under the composition scheme from Rs. 75 lakh to Rs. one crore for 27 States (including Jammu & Kashmir and Uttarakhand).

- ii. Increase in the aggregate annual turnover threshold for eligibility under the Composition scheme from Rs. 50 lakh to Rs. 75 lakh for Special Category States (as specified in sub-clause (g) of clause (4) of article 279A of the Constitution) other than Jammu & Kashmir and Uttarakhand.
- iii. Taxpayers having annual turnover of up to Rs.1.5 crore in the previous year provided with an option to file quarterly Returns.
- iv. Registered persons making supply of goods to make payment of tax on issuance of invoice and not at the time when advances are received.
- v. Suspension of the application of reverse charge mechanism under Section 9(4) of the CGST/SGST Acts, 2017 and Section 5(4) of the IGST Act, 2017 till 31 March, 2018 for all categories of registered persons.
- vi. Uniform rate of tax @1% under Composition scheme for manufacturers and traders. The  turnover  of  taxable  goods  to  be  considered  for  eligibility  for  the  Composition scheme for traders.
- vii. Supply of exempted services by Composition taxpayer will be allowed and the same will not be taken into account while computing the aggregate turnover.
- viii. Amount  of  late  fee  payable  for  delayed  filing  of  return  in  Form  GSTR-3B  by  a taxpayer  whose  tax  liability  for  the  month  was  'Nil'  reduced  to  Rs.20/-  per  day (Rs.10/-  per  day  each  under  CGST  &  SGST  Acts)  subject  to  maximum  Rs.5000/under each Act from October, 2017.
- ix. The amount of late fee payable for delayed filing of return in Form GSTR-3B by other taxpayers reduced to Rs. 50/- per day (Rs. 25/- per day each under CGST & SGST Acts) subject to maximum Rs.5000/- under each Act from October, 2017.
- x. The filing of returns by the taxpayers has been simplified by continuing the GSTR-3B return up to March 2018. The filing of FORM GSTR-2 and GSTR-3 returns has been kept in abeyance till further notice.

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