NEW DELHI: With a number of queries and complaints from the Micro Small and Medium scale Enterprises (MSME), the GST council, chaired by Interim Finance Minister Piyush Goyal, will meet on Friday, to address specific queries from the sector.
The MSMEs want the Centre to bring clear guidelines on anti-profiteering, as the current law is open to multiple interpretations. Demand was raised for GST refunds to be paid in cash for all entities having a turnover of up to Rs 2.5 crore.
In the pre-GST regime, small-scale industries having a turnover of up to Rs 1.5 crore were exempted from payment of excise duties. This incentive was not applicable after the implementation of GST that subsumed all state and Central taxes.The sector has also been demanding that all scheduled banks be authorised for tax payment on the portal of the technology backbone Goods and Services Tax Network (GSTN). Currently, only 14 banks are authorised for GST payment.
The MSME sector has sought the present limit of e-way bill to be increased from Rs 50,000 to Rs 1,00,000, which will reduce compliance burden.Meanwhile, Piyush Goyal has asked the zonal offices to give a list of problems faced by MSME sector.
“The minister has asked all the zones to give a list of issues faced by the sector. Based on the data, the Council may identify the problem area and can act accordingly. The meeting will focus on simplification of policy, reducing compliance burden and technology-related issues affecting the MSME sector,” said a Finance Ministry official.
The format of the 29th meeting of the Council will be different, with no formal consolidated agenda note. “It is further hoped that some resolution may be kept under discussion to clear up pre-GST disputes. These relaxations are expected to improve productivity in this sector and boost employment opportunities,” said Archit Gupta, Founder & CEO, ClearTax. Experts also feel that reduction in the periodicity of returns for SMEs would encourage more of them to comply.