GST is Goods and Simple Tax. GST is improving ease of doing business and resulting in gains to small and medium businesses. It is a matter of pride and happiness that around 48 lakh new enterprise got registered under GST in one year.
Prime Minister of India
The very small businesses have been protect. Those with turnover of less than Rs. 20 lakhs don’t pay GST. Those with a turnover upto Rs. 1 Crore can compound their GST with a payment of 1% tax on the turnover, and file a quarterly return.
Union Finance Minister
|04||Filing of Returns Relaxation in late fees for delayed filing of returns|
|05||Scope of Input tax credit|
|07||Payment of tax|
|09||GST on Handicrafts|
|10||GST on Textiles|
|11||Goods – Reduction of Rates|
|12||Services – Reduction of Rates|
MSME sector contributes significantly to the national economy, employment generation and rural industrialization.
The Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades. It contributes significantly to the economic and social development of the country by fostering entrepreneurship and generating largest employment opportunities at comparatively lower capital cost, next only to agriculture. MSMEs are complementary to large industries as ancillary units and this sector contributes significantly in the inclusive industrial development of the country. This sector has made significant contribution in employment generation and rural industrialization, with the blend of traditional skills and infusion of technical know-how, The MSMEs are widening their domain across sectors of the economy, producing diverse range of products and services to meet demands of domestic as well as global markets.
According to the data available, there are over 63 million MSMEs in the country engaged in manufacturing, services and trade — more than half of which are in rural areas. These enterprises account for about 110 million jobs and contribute about 29% of the country’s economic output, as per the National Sample Survey (NSS) 73rd round conducted during 2015-16. The MSMEs’ role in employment creation and development of the economy makes it imperative for the government to make it easier for them to do business and comply with regulations. In recognition of the same, relief to this sector in GST laws, procedures and rates has been a priority area.
Contribution of MSME in GDP
|Year||Total GDP (In Rs. Crore)||Share of MSME In GDP (%)|
In the 29th meeting held on 4th August, 2018, the GST Council took a series of steps which will significantly ease compliance burden for the MSME sector. One of the important decisions made in this meeting is to constitute a Group of Ministers (GoM) for MSMEs which would identify the measures to be taken to provide a conducive environment for the growth of MSMEs after examining the recommendations of the Law Committee, the Fitment Committee and the IT Committee on the representations and suggestions relating to the MSME sector received from various stakeholders. The composition of the GoM is given below: