Coimbatore, July 1 (KNN) The micro, small and medium enterprises (MSMEs) should be treated as a priority sector and a special budget provision should be there for them, said Coimbatore District Small Industries Association (CODISSIA) while sharing its budget expectations with KNN India.

In a recommendation letter submitted by the CODISSIA to the Finance Ministry ahead of the Budget 2019, the President of CODISSIA, R. Ramamurthy said “TUF Scheme should be introduced for expansion and modernization of MSME. To meet skill manpower, skill development centers need to set up across the country”.

 

Ramamurthy said that Central Government should pay to the fresher’s who joins MSME units for initial one year. Labor laws need to be simplified and relaxed for MSME.

 

Without any collateral security, banks should provide loans to MSME up to 3 crores. Interest rates for MSMEs should be charged below 7 percent, are few recommendations CODISSIA made to the Ministry.

 

With regard to GST, he said that government should bring down the GST for MSMEs. In addition, he suggested that GST exemption limit to be increased from Rs 40 lakhs to Rs 1 crore.

 

“Currently, the job worker is charged at 18% GST. The big companies take 3 months to pay the workers. Hence, GST of 18% is an added burden on the MSME Sector. Online invoicing in GST portal should not be implemented for MSMEs”, he added.

 

GST rates for Cement and Automobiles should be brought down. Electricity charges should be included in the GST with ITC. The government should implement two slab GST rates for all the commodities. MSMEs can be allowed to avail ITC for the GST charged for new building construction, President added further.  

 

The recommendation also included that, NPA from the current 90 days to be increased to 180 days. Currently, Income Tax is charged at 25% for LLP and Companies, where turnover for FY 2015-16 was less than Rs. 250 crores. This concession should be extended for proprietorship and partnership firms also.

 

CODISSIA said “We request the government allow the job workers to come under Composite Scheme up to a turnover of Rs.1.5 crores.”

 

It explained that a late fee is charged for the delay in filing of various returns under the provisions of the GST Act. The late fee is Rs.100 per day under the CGST Act and Rs 100 per day under the SGST Act. A total late fee per day is Rs 200. Since the GST returns to use a different platform as compared to the previous Central Excise and VAT returns, the late fees should be waived up to the March 2018 return for all the returns.

 

Published On : 01-07-2019

 

Source : KNN India