The country’s general budget (Budget 2021) will be presented on 1 February. The dates have been officially announced. The Cabinet Committee on Parliamentary Affairs has issued a full schedule of the session. Let us know that the budget session of Parliament will be from 29 January and will run in 2 parts till 8 April. This time, the MSME sector is expected to get relief in the budget. MSME Sector is expected to get relief in GST in Budget 2021. Experts also believe that this time the MSME sector should give relief in GST (Budget 2021 Expectations). Please tell that due to Corona, commercial services have suffered a lot.
GST should be reduced
Chandrakant Salunk, president of SME Chamber of India and Startup Council of India, told Financial Express that the government should reduce the GST rate on most business services from 18 percent to 5 percent at present for business development and to encourage MSMEs. Explain that 18% GST is levied on services like legal professionals, chartered accountants, architects, courier services, management consulting and HR, marketing, supply chain management, hosting and IT infrastructure provisioning, maintenance, repair and installation services.
Indications of special provision for MSMEs
Please tell that Finance Minister Nirmala Sitharaman has also indicated to make special provision for MSME in the upcoming budget. According to experts, the government managed the finances fairly wise in the Corona era and the expenditure was increased to a certain extent. Therefore, there is full scope for a new provision for MSMEs in the budget.
NPA hopes to increase the classification period
According to a portal report, in the coming budget, the central government may increase the NPA classification period associated with MSME from 90 days to 120-180 days. In order to provide relief to small and medium businessmen suffering from the epidemic, the government may announce relaxation of these rules in the budget. According to the report, relief in non-performing assets rules is possible in this time budget. Explain that currently any loan is declared non performing assets when the interest or principal amount of that loan is not credited even after 90 days.
The amount of collateral free loan should be increased
Experts believe that this time the amount of collateral free loan should be increased by the government in the budget. It should be increased to Rs 5 crore for micro units, Rs 15 crore for small businesses, and up to Rs 35 crore for medium businesses. This will make better use of available funds with banks and benefit needy businessmen.