New Delhi: Finance Minister Nirmala Sitharaman announced a slew of measures to boost growth of the nation yesterday. Speaking a press conference, she said all pending GST refunds will be paid to micro, small and medium enterprises (MSME) sector within 30 days.
Also all GST refunds of MSMEs will be paid within 60 days from the date of application in the future, she said. This has come as a relief to those sectors facing liquidity shortage.
Sitharaman, while speaking at the press conference, said the decision on recommendations of the U K Sinha Committee regarding ease of credit, marketing, technology and delayed payments to MSMEs will be taken within 30 days.
She further said that to take advantage of liquidity with the public sector banks (PSBs) and last mile customer connect of NBFCs, the State-run lenders will fast track collaboration for loans to MSMEs.
The MSME sector accounts for about 29 per cent of the GDP and is one of the largest job creators in India.
Thanking Sitharaman, MSME Minister Nitin Gadkari tweeted that the measures will beneficial for the MSME sector and will increase job opportunities. Speaking to reporters on the announcements made by the Finance Minister, Gadkari said the amount of pending GST refunds owed to MSMEs is significant. He also stated that to move toward a single definition, the government would seriously consider amending the MSME Act and that a decision will be taken in the next 10-15 days regarding the matter.
It is reported that the average amount of GST refund related dues at any given point in time is around Rs 7,000 crore.