The Central Government was urged by the Federation of Coimbatore Industry Associations to create a distinct Goods and Services Tax (GST) slab for the goods produced by Micro, Small, and Medium Enterprises (MSMEs), as they were unable to compete with the large corporations.
The organiser reported that the Since the implementation of the GST, MSMEs have been having trouble. As both big companies and MSMEs have the same GST slabs, they could not compete with the major manufacturers. Thus, the MSME sector needs its own GST slabs.
Also he added that loans should be provided at subsidiary rates to the MSME sector like the agricultural sector. According to the current scenario, the interest of the loans is high and the MSMEs couldn’t make any profit. Pursuant to the organisers, the profit margin would be improved if interest rates for loans were brought down.
Also, the organiser criticised the state government’s strategy. The state government’s most recent increase in the price of electricity has also made things difficult for the industry. He pleaded with the administration to do away with the peak power usage model and reverse the increase in fixed fees.
The 20-person group held a meeting to discuss this. It is important to highlight that the government and other governmental organizations are doing their utmost to support MSMEs. The Reserve Bank of India (RBI) released Resolution Framework 2.0 for stressed assets of individuals, small enterprises, and MSMEs pertaining to COVID at the same time.
Also the MSMEs expectations on the budget 2023 which was covered by the Taxscan in detail. MSMEs typically expect government support in the form of tax breaks, subsidies, and easier access to credit and funding in budgets. They may also look for measures to improve ease of doing business and to promote exports. And in the budget the government provided relief to the MSMEs who failed to perform the duties.
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