The 29th GST Council meeting was held on Saturday to discuss a few issues but mainly to take decisions on providing relief to the small and medium business (SMEs). However, the council has handed over the issues of the MSMEs to a sub-committee, on the report of which, the former will take decisions. The committee headed by Minister of States, Finance, Shiv Pratap Shukla, will look into the issues from returns filling to technology-related issues.
“This decision has put a halt to many major decisions which are not likely to happen before the 2019 general elections. Few verdicts were extremely crucial for the MSME sector and the council should have taken a quick decision on some aspects rather than handing it over to a committee of members,” Abhishek A Rastogi, Partner, Khaitan & Co told FE Online.
“The MSME sector had high aspirations from the GST Council on many technical aspects plaguing the sector such as streamlining compliance, regulating technical disruptions, blockage and eligibility for refunds,” he added.
However, Vishal Raheja, DGM GST, Taxmann, is hopeful that special benefits will be granted to boost the growth of MSME sector in the next meeting. The GST was expected to consider extending some monetary sops to MSMEs, along with laws, tax rates, procedure and GST Network-related issues.
In its last meeting on July 21, the GST Council had allowed quarterly return filing for assessees up to Rs 5 crore turnover with monthly tax deposits. The MSMEs sector suffered the most due to demonetisation first, and then due to the adjustment required under the GST regime with regard to the technology, logistics and infrastructure.