One of the main agendas of the meet was to reduce high interest rates on loans given to MSMEs by banks and to address the delayed release of payment from big-ticket clients. Babu said, “At present bank loan interest rate for us stands at 12 to 13 per cent which is quite high. This has to be brought down to 8 per cent as in the case of home loans. The PSUs and Corporates who are our clients do not release their payments to us, the vendors, on time. This results in our failure to repay our bank loans and make the statutory payments.”
Of many executions, the top was the extension of NPA norms from 90 days to 180 days and requested the government to address the issue of delayed payment made by PSUs and corporates to MSMEs. While welcoming the government’s move towards changing the definition of MSMEs, the forum demanded, the definition to be tweaked as Micro (INE 5 crs turnover), Small (INE 5 crs – 25 crs turnover), Medium (INR 25 crs – 250 crs turnover). The forum urged that the subsidy should be increased to SME sector.
The forum had demanded that filing of returns at present is being done every three months but payment has to be made every month. Both must be made to every three months. Filing returns is very cumbersome and a simple return filing system for businesses having up to Rs 25 crore turnover must be introduced. Some of the other GST-related demands included CGTMSE scheme to be mandatory upto INR 2 Crores and no Collatoral should be insisted up to INR 2 Crs.
The memorandum also requested Job workers be exempted from GST. Job workers are mostly unskilled labour in the micro industry who were not taxed before the GST regime. But now, they have to pay a GST of 18 per cent. The MSME associations also sought the reduction of the GST slab for auto manufacturers to 18 per cent which is currently charged 28 per cent.The members requested a task-force that was set up during the Prime Minister ship of Vajpayee be set up today.
Some of the other demands ranged from exit policies, Sarfaesi act, technology up gradation scheme and other labour related aspects. Office bearers of TANSTIA, KASSIA, KSSIA, FSME-INDIA,FETSIA, FAPSIA participated