The Federation of Indian Chambers of Commerce & Industry (FICCI) has welcomed the Goods and Service Tax (GST) Council’s initiative to discuss the issues that Micro Small and Medium Enterprises (MSMEs) face. FICCI President Rashesh Shah said that the group of ministers headed by the Minister of State for Finance Mr. Shiv Pratap Shukla and including the finance ministers of Assam, Bihar, Delhi, Kerala and Punjab will surely strive to resolve the problems that the MSMEs face. Shah added that the GST Council forming the fitment committee to look into the tax rate issues and their pilot project for GST cash back facility for promoting digital payments will surely benefit the MSMEs.
The MSMEs form a vital cog in the wheel of economic and social development of the country. The MSME sector acts as a nursery of entrepreneurship. Their effective, efficient, flexible and innovative entrepreneurial spirit could propel the country on the path of development. Rashesh Shah sounded optimistic about the committee addressing the problems of the MSMEs and come up with long-lasting solutions.
FICCI has submitted some recommendations regarding the MSMEs to the GST Council. Among these, a single pan-India registration would help to mitigate the uncertainty, cascading and unnecessary compliance. A single registration with credit mechanism for MSMEs would ensure no credit blockages. The FICC concluded the list of recommendations, with GST for breakfast cereals to be reduced from 18% to 12%, thus boosting the reach of this essential food product to many people.
