Major measures to promote growth of GST-registered micro, small and medium enterprises (MSMEs) have been announced by Government of India. These are :
Trade receivables and e-discounting systems- All companies with turnover of more than Rs 500 crore would have to now come on Trade Receivables e-Discounting System (TReDS) platform so that there is no cash flow problem for MSMEs
Tech upgrade– Rs 6,000 crore technology upgradation package for MSMEs.
Government e-Marketplace- Government e-Marketplace platform procurement mandatory for AIIPSEs.
Environmental laws- Easing compliance with environmental rules, MSMEs will need single air and water clearance and just one consent to establish a factory.
Relaxation in labour laws– MSMEs will have to file just one annual return on eight labour laws and 10 central rules. Modi added that an ordinance has been promulgated to simplify levy of penalties for minor offences under the Companies Act.
59-minutes loan– A 59-minute loan sanction portal, which will allow easy and quick credit up to Rs 1 lakh to small businesses.
Computerised random allocation & a time frame– Computerised random allocation of factory inspection with reports to be filed within 48 hours
Loan option– GST registered firms can get loans through the GST portal itself. For the exporters seeking loans on pre-shipment and post shipment, the rebate has been increased from 3% to 5%.
Interest concession– Government to raise interest concession on loans for MSME exporters to 5% from 3%.
Quick loan access– 2% rebate for loans up to Rs 1 cr for GST-registered MSME.
MSME’s led by women– Mandatory for PSUs to procure up to 3 per cent from MSMEs led by women.
More details at https://msme.gov.in/