Lok Sabha Question No. 1818 (UNSTARRED), answered on 2024-08-01
Subject: Development of MSME Sector
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Kaushalendra Kumar, Shri Rajesh Ranjan, Shri Dinesh Chandra Yadav

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

## LOK SABHA

## UNSTARRED QUESTION NO. 1818

TO BE ANSWERED ON 01.08.2024

## DEVELOPMENT OF MSME SECTOR

1818.

SHRI RAJESH RANJAN:

SHRI DINESH CHANDRA YADAV:

SHRI KAUSHALENDRA KUMAR:

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

- (a) the steps being taken by the Government for the development of Micro, Small and Medium Enterprises (MSME) sector;
- (b) whether the Government is aware about the difficulties being faced by MSME sector under Goods and Service Tax (GST) monthly payment as there is heavy penalty on delay of payments and if so, the details thereof;
- (c) whether the Government proposes to give exemption to MSME manufacturing units (atleast to MICRO mfg. units) upto three months from payment of any penalties; and
- (d) if so, the details thereof?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE)

- (a): Government has taken a number of steps for the development of MSME sector. They are as given below:
- i. New  criteria  for  classification  of  MSMEs  with  higher  threshold,  based  on  Investment  and Turnover, to widen the ambit of the MSME sector, notified on 26.06.2020.
- ii. No global tenders for procurement up to Rs. 200 crores.
- iii. 'Udyam Registration' for MSMEs, for Ease of Doing Business, launched on 01.07.2020.
- iv. Launch of Udyam Assist Platform, on 11.01.2023, for bringing Informal Micro Enterprises in the formal ambit.
- v. Inclusion of Retail and Wholesale traders as MSMEs w.e.f. 02.07.2021 for credit purpose.
- vi. Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs.
- vii. Launch of SAMADHAAN Portal for filing of grievances and monitoring of outstanding dues to the Micro and Small Enterprises from the buyers of goods and services.
- viii. Launch of an online Portal 'Champions' in June, 2020 to cover many aspects of e-governance including redressing grievances and handholding of MSMEs.

(b) to (d): As per the information provided by Goods and Services Tax Council Secretariat, as a trade facilitation measure, based on turnover, following enterprises are not required to obtain GST registration:

- i. Persons involved in intra-state taxable supply of goods, if aggregate turnover in a financial year does not exceed ₹ 40 Lakh.

- ii. Persons  involved  in  intra-state  or  inter-state  taxable  supply  of  services,  if  aggregate turnover in a financial year does not exceed ₹ 20 Lakh.

To  ease  the  compliance  burden  involved  in  filing  of  monthly  Returns,  several  facilitation measures have been taken for the MSME sector. It has also been informed that Composition levy scheme  in  GST  has  been  designed  for  small  and  medium  taxpayers  having  turnover  within  the prescribed limit. A supplier of Goods having an aggregate turnover upto Rs. 1.5 crore and a supplier of service having a turnover upto Rs. 50 lakh may opt for the  Composition Scheme. The tax has to be  paid  on  a  quarterly  basis,  based  on  a  declaration  and  such  taxpayers  do  not  have  to  maintain elaborate accounts and have to file only one annual return.

Further,  as  per  the  information  provided  by  Central  Board  of  Direct  Taxes,  Department  of Revenue, Ministry of Finance, the Income Tax Act, 1961 does not provide for any specific penalty only for Micro, Small and Medium Enterprises.

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