Published
Aug 26, 2019
Reading time
2 minutes
Download
Download the article
Print
Text size

Government to speed up GST refunds process for MSMEs

Published
Aug 26, 2019

Finance Minister Nirmala Sitharaman has announced that all pending goods and services tax refunds for micro, small, and medium enterprises will be cleared within 30 days and the central government’s board of Indirect Taxes and Customs  is looking for ways to speed up the process.

The central government is working on speeding up the process of sending GST refunds to MSMEs


As part of the central government’s plan to provide liquidity to MSMEs as it seeks to promote them, it is looking into how to speed up the GST refund process, sources told TNN. The Central Board of Indirect Taxes and Customs will refund MSMEs a total of between Rs 4,000 crore ($601.3 million) and Rs 5,000 crore within the coming month.

Minister Sitharaman said on August 23 that all GST refunds for MSMEs will be cleared in 30 days and, in the future, no refunds will remain pending for over 60 days. Sitharaman is also in talks to create a plan for speeding up the process in future to make sure that small businesses do not face cash flow problems whilst waiting for refunds. 

The government is currently promoting the MSME sector as it sees it as vital for growing the country’s economy as a whole and for increasing domestic production. As part of this plan, the government will soon launch an e-commerce portal designed for MSMEs. In April, the government predicted that the MSME sector could create one crore jobs in five years and sees the sector as at the heart of India’s next phase of economic growth. 

Copyright © 2024 FashionNetwork.com All rights reserved.