CHENNAI: As Prime Minister Narendra Modi is set to form the government for the third time, industries in the state are anticipating policies aimed at fostering economic growth, sustainability, and innovation besides providing positive reforms in the Micro, Small and Medium Enterprises (MSMEs).
The Madras Chamber of Commerce and Industry believes the new government will work towards ensuring growth and accelerated development for India and Tamil Nadu as a whole.
TR Kesavan, president of MCCI, said, “The industry is eagerly anticipating the new administration’s policies aimed at fostering economic growth, sustainability, and innovation. We are optimistic about collaborative efforts that will drive progress and improve the business environment of the country further.”
CK Mohan, president of Tamil Nadu Small and Tiny Industries Association, said the new dispensation should allow MSMEs to file their GST returns on a monthly basis and remit the GST Payment on quarterly basis as most of their buyers from corporates and PSUs are delaying the payment. This will help the MSMEs reduce the financial burden and remit the GST after receiving their payment, he said, adding the Union government should withdraw the Sarfaesi Act or at least exempt the units which have taken loans up to Rs 5 crore loans.
General Secretary of TANSTIA, S Vasudevan said, “We are looking forward to more reforms for MSME policy towards ease of doing business. We also request not to compromise on amendment to Section 43B of the Income Tax Act to insert a new clause (h) as an additional measure to address the challenge of delayed payments faced by MSMEs in the country, hindering the flow of working capital and overall business growth.
We also suggest making the TReDS platform compulsory for all PSUs and large industries for payments to MSMEs. By making this compulsory, the interest beyond 45 days shall be borne by the buyer. This will help the buyers to continue their purchases with MSMEs without any issue.”
Mohan said any problems with regard to implementing this new Income Tax Act 43B(h) has to be discussed and modified without any change in 45 days payment to SMEs. ie., capital goods buyers will not come under the Act.
‘Let MSMEs to file GST returns on monthly basis’
Tamil Nadu Small and Tiny Industries Association, said the new dispensation should allow MSMEs to file their GST returns on a monthly basis and remit the GST Payment on quarterly basis as most of their buyers from corporates and PSUs are delaying the payment. This will help the MSMEs reduce the financial burden and remit the GST after receiving their payment