Lok Sabha Question No. 5368 (UNSTARRED), answered on 2025-04-03
Subject: Ease of Doing Business for MSMEs
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Smt. Kanimozhi Karunanidhi, Thiru Dr. S Jagathratchakan

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

## LOK SABHA UNSTARRED QUESTION NO. 5368 TO BE ANSWERED ON 03.04.2025

## EASE OF DOING BUSINESS FOR MSMEs

5368.   SHRI S JAGATHRATCHAKAN:

SMT.  KANIMOZHI  KARUNANIDHI:

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

- (a) whether  the  Government  is  aware  of  the  findings  in  the  report  published  by  ASSOCHAMEGROW which highlight that 30 percent of MSMEs struggle with accessing finance, 34 percent face complex  Goods  and  Services  Tax  (GST)  compliance  issues,  severely  impacting  their  growth  and sustainability;
- (b) if  so,  the  specific  steps  taken  by the  Government to streamline  MSME support schemes and ensure  that  information  about  these  schemes  reaches  entrepreneurs,  particularly  in  rural  and  semiurban areas;
- (c) whether the Government is considering reforms in GST compliance to reduce the regulatory burden on MSMEs,  including  a tiered penalty structure and state-specific GST  registration simplifications; and
- (d) the details of steps taken by the Government to address regulatory hurdles and improve ease of doing business for MSMEs in the country?

## ANSWER

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

(a) to (c): The Government of India has taken a number of initiatives and measures to provide support to Micro, Small and Medium Enterprises (MSMEs) in accessing finance across the country, including  in  rural  and  semi-urban  areas.  The  measures  inter-alia  include  schemes  and  programmes such as Prime Minister's Employment Generation Programme, Special Credit Linked Capital Subsidy Scheme,  Credit  Guarantee  Scheme  for  Micro  and  Small  Enterprises,  PM  Vishwakarma,  Pradhan Mantri Mudra Yojana, Stand Up India, Self Reliant India, Fund of Funds for Startups, etc.

As informed by GST Council, a Group of Ministers to identify measures necessary for creating a  conducive  environment  for  MSMEs  was  constituted  and  based  on  the  recommendations,  various measures  for  MSME  Sector  have  been  taken  to  promote  ease  of  doing  business  and  reduce  the regulatory burden on MSMEs.

- (i) Based on turnover, certain enterprises are not required to obtain GST registration and the details are as given below:
-  If aggregate turnover in a financial year does not exceed 40 Lakh for supply of goods
-  If aggregate turnover in a financial year does not exceed 20 Lakh for supply of services
- (ii) Composition levy scheme in GST is an alternative method of levy of tax for MSME taxpayers having turnover upto a prescribed limit.

- (iii) To simplify GST filing for MSMEs, special return filing provisions for MSME Sector has been introduced.  The  Government  has  notified  that  all  eligible  registered  persons  having  annual turnover  up  to  Rs.  5  crore,  in  the  preceding  financial  year,  may  opt  for  filing  of  quarterly returns with monthly payment of tax.

Awareness programmes are regularly conducted by the Ministry of MSME / field offices of Ministry of MSME, in coordination with MSME/ Industry Departments of States/UTs concerned and other  stakeholders  Ministries,  Organization,  etc.  to  ensure  that  information  about  these  schemes reaches entrepreneurs, particularly in rural and semi-urban areas.

(d): A number of steps have been taken to address regulatory hurdles and improve ease of doing business for MSMEs by the Government as given below:

- (i)   Udyam Registration  Portal  was  launched  on  01.07.2020  to  facilitate  ease  of  registration  for MSMEs. The process of registration on Udyam is fully online, paperless and based on selfdeclaration.  The  Ministry  in  association  with  Small  Industries  Development  Bank  of  India launched  Udyam  Assist  Platform  on  11.01.2023,  for  bringing  Informal  Micro  Enterprises (IMEs)  into  the  formal  ambit.  This  has  helped  the  registered  IMEs  to  avail  the  benefits  of Priority Sector Lending.
- (ii)  The  Ministry  of  MSME  reduced  the  Compliance  Burden  on  business  as  well  as  on  citizens related  to  Public  Procurement  Policy  for  Micro  and  Small  Enterprises  Order,  2012  vide Notification No. S.O. 3237(E) dated 11.08.2021 as identified by the Department for Promotion of Industry and Internal Trade (DPIIT).
- (iii) As informed by DPIIT, National Single Window System has been developed, which integrates the existing clearance/regulatory systems of various Ministries/ Departments of Government of India  and  State Governments. A total of 278 Central Government approvals and 2,977 State Government approvals can be applied through this facility.

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