 in the first term which impacted Micro, Small and Medium Enterprises (MSMEs) sector.){kind=link}
The Modi government took two steps (demonetization, GST) in the first term which impacted Micro, Small and Medium Enterprises (MSME) sector. Smaller businesses had to face problems due to cash crunch and GST. However, traders supported the Modi government as they felt that these steps were in larger ‘National Interest’. The domestic traders’ body, Confederation of All India Traders (CAIT) had asked the 7 crore traders of the country to vote for BJP. The traders also started ‘to whisper campaign’ to their customers to do the same. After being re-elected with an even larger majority, the government has decided to reward traders for their ‘faith’ in the government.
The Goods and Services Tax Network (GSTN) will offer free billing and accounting software to 80 lakh MSMEs with annual turnover up to 1.5 crore rupees. “GSTN has partnered with eight billing and accounting software vendors for providing software to the micro, small and medium enterprises, with annual turnover under Rs 1.5 crore, in a financial year without any cost to such taxpayers,” said the statement by releasing by GSTN. The software would help the MSMEs to account statements, manage inventory and prepare GST returns.
The move will improve efficiency and compliance burden, “Such taxpayers are nearly 80 percent in number under GST and thus this step is going to benefit a large number of taxpayers. GSTN on the directions of GST Council has identified eight vendors to provide the accounting and billing software without any cost to such taxpayers,” said the GSTN chief executive officer Prakash Kumar.
Modi government has taken many steps for the revival of MSMEs in the previous few years. The credit rules were eased up, regulatory norms have been standardized and tax incentives were offered to MSMEs. To ensure the welfare of people working in MSMEs, the government brought pension and provident fund schemes. The steps are shown up results as the credit growth has moved northwards. The total credit to MSMEs increased from 11.7 lakh crore rupees in December 2014 to 25.2 lakh crore rupees in December 2018. Therefore credit to small business increased by 115 percent in the last four years. The compound annual growth rate (CAGR) to entities was 26.1 percent, while for individuals it was 15.7 percent.
Earlier, the Modi government announced a Diwali bonanza to Micro, Small and Medium Enterprises (MSME) sector on Friday. The government announced many steps to support the MSME sector, including faster approval of licenses, easier and cheaper credit. The MSMEs registered under GST will get 2 percent interest subsidy on new loans. The government also launched a website named psbloansin59minutes.com to provide easier and time-bound access to loans for MSMEs.
As per a survey conducted by ‘Confederation of Indian Industry’ (CII), the Modi government generated 1.49 crore jobs per year in the MSME sector. That’s a gigantic 6 crore jobs in the previous 4 years. The 2019 general election manifesto of the BJP’s has put special emphasis on Micro, Small and Medium Enterprises (MSMEs), startups and traders. The party promised to take the credit amount under the Credit Guarantee Scheme to 1 lakh crore rupees by 2024 from 19,000 crore rupees is 2017-18. The growth of the MSME sector will help the economy, job creation, and electoral prospects of BJP.
Highlights
The Goods and Services Tax Network (GSTN) has started providing Billing and Accounting software to the Micro, Small and Medium Enterprises (MSMEs) As per directions of GST Council in January, GSTN has partnered with some Billing and Accounting software vendors for providing free software to the Micro, Small and Medium Enterprises, with annual turnover under Rs 1.5 Cr, in a financial year. This facility is made available to the active Normal taxpayers, SEZ Developers/SEZ Units and taxpayers who have opted for composition scheme under the GST regime. There are eight products to choose from. These are available as a cloud-based version as well as a downloadable version that installs on desktop or laptop. This software allows a taxpayer to run his daily business by providing day to day billing and accounting features, along with a facility for return filing for their GST related compliances. Some of the free features being made available by all the vendors are Sale/ Purchase/ Cash ledger, Inventory management, Supplier/ Customer Masters, Generation of Invoices, Preparation of GST Returns, etc. The software would be available free of cost to eligible taxpayers till 31.03.2021 or till the taxpayer’s annual turnover remains under Rs 1.5 Cr in a financial year, after which the taxpayers may have to pay a fee to the vendor. For using features other than free features listed or using the software beyond the initial free period, the taxpayer may visit the respective vendor’s product site to ascertain the fee payable, if any. To download the accounting and billing software on the GST Portal, the taxpayer needs to login to the GST Portal with valid credentials and navigate to Downloads > Accounting and Billing Software option.