Nirmala Sitharaman: MSMEs to get pending GST refunds within 30 days

In a major relief to MSME sector facing liquidity short, government on Friday anunced that all ir pending GST refunds will be paid within 30 days.

Also, in future, all GST refunds of micro, small and medium enterprises (MSMEs) will be paid within 60 days from date of application, Finance Minister Nirmala Sitharaman said while anuncing a slew of measures to boost growth. Nirmala Sitharaman also said decision on recommendations of U K Sinha Committee regarding ease of credit, marketing, techlogy and delayed payments to MSMEs will be taken within 30 days.

READ: FM Nirmala Sitharaman Introduces Computerised System On IT tices

government would also consider an amendment to MSME Act to move towards a single definition. MSMEs sector, which accounts for about 29 percent of gross domestic product (GDP), is one of largest job creators in country. In addition, a major move to tackle Tax terrorism, Union Finance Minister Nirmala Sitharamanalso anunced a centralized system for Income Tax issues, tices, etc, while addressing a press conference in New Delhi. She elaborated that from October 1, 2019, onwards, a centralized system would issue tices to tax assessees. Boosting wealth creators, she said that system will generate unique identification numbers (DIN) to track issues and tices. Sitharaman made this statement in a climate of ecomic slowdown seen in Indian ecomy. 

Finance Minister Nirmala Sitharaman explains on-ground implementation

Finance Minister explained entire process of tax collections which will occur on ground. She said that tices will be issued without central approval. Assuring that amalies in paper and practice will be eliminated, she said that se moves will favour assessee. She also anunced that assessee will be able to track issue and complain if he has any grievance.

READ: Home, Vehicle, Or Retail Loans To Become Cheaper: FM Sitharaman

Current Ecomic Slowdown

Sources have reported that India's ecomic slowdown led to Moody's reducing India's growth forecast by 0.4 % in GDP for next fiscal year (FY 21). Sources have said that slow growth in ecomy was allegedly triggered after some anuncements in Finance Minister Nirmala Sitharaman's maiden Budget speech. surcharge levied on foreign investors has allegedly led to an exodus of investors from Indian markets, as per sources. Recent trends have also seen a collapse in stock exchange points due to slowing ecomy particularly in automobile, FMCG, construction, MSME sectors.

(With PTI Inputs)