Budget 2024: Streamlined GST, more liquidity, reduced compliance among key asks to support MSMEs
Traders’ body Confederation of All India Traders (CAIT) has proposed the establishment of GST coordination committees at the district level for streamlined problem-solving and increased GST network, leading to enhanced revenue for both central and state governments.
As February 1 draws closer, stakeholders in the MSME ecosystem have been voicing their Budget 2024 demands to Finance Minister Nirmala Sitharaman to support the growth of small businesses. Among the key asks is streamlining Goods and Services Tax (GST) and enabling more credit access to businesses. Here are some of the key recommendations by MSME voices to the government:
Streamline GST
Traders’ body Confederation of All India Traders (CAIT) has proposed the establishment of GST coordination committees at the district level for streamlined problem-solving and increased GST network, leading to enhanced revenue for both central and state governments. It also called for the creation of a special income tax slab for businesses similar to that for companies. Supporting the Prime Minister’s vision of “One Nation, One Tax,” they proposed the introduction of a single license for businesses. CAIT also urged for the immediate announcement of e-commerce policy and the implementation of the National Retail Trade Policy.
Ramaswamy Iyer, Founder and CEO, Vayana: There is a pressing need to have programs similar to ECLGS, to assist MSMEs and ease their liquidity position. Since MSMEs usually operate on thin margins and stretched working capital, such schemes facilitate lower interest rates due to credit guarantee and reduce the interest burden. In the realm of global outreach, facilitating cross-border trade finance is imperative to achieve India’s ambitious export targets set at $2 trillion by 2030. Necessary amendments are required, especially to the Negotiable Instruments Act, which will allow MSMEs to access formal and affordable credit using digital negotiable instruments.
