The current Covid-19 conditions have led to unprecedented decline in the economy. Worst hit is the MSME sector which is struggling to survive. Looking to such situation, 40th GST council meeting made certain welcome steps like reduction in late fees and interest rates which will give some oxygen to MSMEs.
The Coimbatore Tirupur District Micro and Cottage Entrepreneurs Association have welcomed the announcement by Union Finance Minister Nirmala Sitharaman that small scale goods and services taxpayers with an annual turnover of less than Rs. 5 crores will pay 9% interest for returns filed for February to April 2020 after July 6th, if return is filed after September 30th. Earlier the interest rate was 18%.
These taxpayers can also pay tax for May to July 2020 by Sep. 30 and no late fees will be charged. The Association president C.Sivakumar also urged the banks to issue guidelines on disbursing Rs. 20,000 crore loan to NPA accounts and interest should be waived for six months as the MSMEs are hit by the spread of the pandemic and the lockdown.
Read at: https://www.thehindu.com/news/cities/Coimbatore/cotma-hails-gst-announcements/article31823210.ece
