Government of India's Measures to Support the MSME Sector

Introduction:

Micro, Small, and Medium Enterprises (MSMEs) play a vital role in India's economy, contributing to employment generation, innovation, and overall economic growth. Recognizing the significance of the MSME sector, the Government of India has implemented several measures to provide support, encouragement, and growth opportunities for MSMEs across the country. These initiatives aim to enhance competitiveness, facilitate access to finance, promote technology adoption, and streamline regulatory processes. This article highlights some of the key measures taken by the Government of India to support the MSME sector. In 2023 and beyond, which is also termed- Amrit Kaal, by the Prime Minister, the Indian MSMEs are likely to witness several opportunities. One of the biggest opportunities lies in the digital transformation of businesses. The pandemic has accelerated the adoption of digital technologies, and MSMEs can leverage this trend to reach new customer

Financial Assistance and Credit Availability:

To address the funding challenges faced by MSMEs, the government has introduced various financial assistance schemes and initiatives. The most notable among them is the "Pradhan Mantri Mudra Yojana," which provides collateral-free loans to micro and small enterprises. Additionally, the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme encourages lending institutions to provide credit without collateral or third-party guarantees to eligible MSMEs. The government has also launched the "Interest Subvention Scheme" to provide interest rate concessions on loans availed by MSMEs.

Table : Contribution of Indian MSME

Sector In Indian Economhy

 

Sector	%
GDP	29
Industrial Output	45
Exports	40

 

Technology Upgradation and Innovation:

The government has recognized the importance of technology adoption and innovation for the growth and competitiveness of MSMEs. The "Technology Upgradation Fund Scheme" (TUFS) provides financial assistance to MSMEs for the modernization of their machinery and technology. The government has also established various technology centers and incubation centers across the country to support MSMEs in research, development, and innovation. These centers offer training, mentoring, and infrastructure support to foster innovation and improve productivity.

Ease of Doing Business:

Simplifying regulatory procedures and reducing bureaucratic hurdles is a crucial aspect of supporting MSMEs. The government has undertaken significant measures to enhance the ease of doing business for MSMEs. The introduction of the online Udyog Aadhaar registration system has streamlined the process of obtaining a unique identification number for MSMEs, enabling them to avail various benefits and incentives. The implementation of the Goods and Services Tax (GST) has simplified the taxation system, reducing compliance burdens for MSMEs. Furthermore, the introduction of the "Saksham" portal enables MSMEs to access various government schemes, benefits, and marketplaces through a single window.

Market Access and Export Promotion:

To promote market access and encourage MSMEs to participate in global trade, the government has launched several initiatives. The "Public Procurement Policy for Micro and Small Enterprises" mandates a certain percentage of government procurement to be sourced from MSMEs. The government has also established the "Trade Related Entrepreneurship Assistance and Development" (TREAD) scheme, which provides financial and developmental support to women entrepreneurs in the MSME sector. Additionally, the "National Small Industries Corporation" (NSIC) assists MSMEs in obtaining technology, marketing, and export-related support.

Skill Development and Capacity Building:

The government recognizes the need to enhance the skill set of MSME entrepreneurs and workers. The "Skill India" initiative aims to provide training and skill development programs for the workforce in the MSME sector. The Ministry of Micro, Small and Medium Enterprises (MSME) has established various Entrepreneurship Development Institutes (EDIs) and tool rooms to provide training, skill development, and capacity-building programs for MSMEs.

Micro and Small Enterprises Cluster Development Programme (MSE-CDP): This scheme aims to promote the development of the MSME clusters by providing support for infrastructure development, technology upgradation, and market access.

 Digital MSME Scheme: This scheme aims to encourage the adoption of digital technologies by the MSMEs by providing support for the development of digital infrastructure, capacity building, and digital marketing.

National Manufacturing Competitiveness Programme (NMCP): This scheme aims to enhance the competitiveness of the manufacturing sector, including the MSMEs, by providing support for the technology. upgradation, quality certification, marketing assistance, and skill development.

National Skill Development Corporation (NSDC): This scheme aims to provide skill development training to the MSME workforce so as to enhance their employability and

Conclusion:

The Government of India has implemented a range of measures to provide comprehensive support to the MSME sector. These initiatives encompass financial assistance, technology upgradation, ease of doing business, market access, and skill development. By addressing key challenges faced by MSMEs and creating an enabling ecosystem, the government aims to foster the growth of this sector to harness its maximum potential. 

Note :  Above text has been compiled from various sources available online and Yojana Magzine April Issue pg 43

                         A short note on section 148 of Income Tax Act 1961:

Introduction:

Section 148 of the Income Tax Act 1961 empowers the Income Tax Department in India to issue notices for the reopening of previously filed income tax returns. This provision enables the tax authorities to reassess the income of taxpayers if they believe that there is an under-reporting or non-disclosure of income. Section 148 plays a vital role in ensuring the integrity of the tax assessment process and preventing tax evasion. In this article, we will delve into the key aspects of Section 148, its applicability, procedure, and implications for taxpayers.

Applicability of Section 148:

Section 148 is applicable in cases where the Assessing Officer (AO) has reason to believe that any income chargeable to tax has escaped assessment. Such reasons may include failure to file a return, non-disclosure of certain income, or incorrect assessment due to oversight or information not previously available. The section ensures that the tax department can rectify such instances and bring them under the purview of proper taxation.

Procedure for Reassessment under Section 148:

Issue of Notice: To initiate the reassessment process, the AO must issue a notice to the taxpayer under Section 148 within a specified time limit. The notice must contain reasons for reopening the assessment and provide the taxpayer an opportunity to furnish a response.
Taxpayer's Response: Upon receiving the notice, the taxpayer has the right to furnish a written response within the stipulated timeframe, challenging the reopening of the assessment. The AO will consider the response and relevant evidence presented.
Reassessment Order: After considering the taxpayer's response, if the AO is satisfied that income has escaped assessment, they will proceed to issue a reassessment order, determining the tax liability for the relevant assessment year. The reassessment is conducted in accordance with the provisions of the Income Tax Act.
Appeals and Objections: If the taxpayer disagrees with the reassessment order, they can file an appeal before the Commissioner of Income Tax (Appeals) within 30 days from the date of receipt of the order. Further appeals can be made to the Income Tax Appellate Tribunal and higher courts.
Time Limit for Reopening Assessments:
Section 148 sets out specific time limits within which an assessment can be reopened. The AO can reassess income that has escaped assessment within four years from the end of the relevant assessment year if the income involved exceeds INR 1 lakh. In cases where the escaped income is INR 1 lakh or less, the reassessment can be initiated within two years from the end of the relevant assessment year. However, if the AO has reasons to believe that there has been willful evasion, concealment, or omission of income exceeding INR 25 lakh, the assessment can be reopened within six years from the end of the relevant assessment year.

Implications for Taxpayers:

Increased Scrutiny: Section 148 grants the tax authorities the power to scrutinize previously filed returns, thereby increasing the possibility of assessments, inquiries, and audits.
Additional Tax Liability: Reassessment under Section 148 may lead to an increase in the tax liability of the taxpayer if additional income is determined during the process.
Compliance and Documentation: Taxpayers need to maintain proper records, books of accounts, and supporting documents to substantiate their income and expenses to avoid challenges during the reassessment proceedings.
Procedural Challenges: Taxpayers may face procedural challenges during the reassessment process, necessitating the engagement of tax professionals for effective representation and guidance.
Conclusion:
Section 148 of the Income Tax Act 1961 empowers the tax department to reassess income that has escaped assessment, ensuring the

GST>> Eway Bills>>

 State Wise Limit for the Purpose of E-way Bills for Intra-State movement of goods.

Below is the table that shows state-wise limit of E-way Bills. No E-way Bill shall be required for intra-state movement of goods where value of goods do not exceed the below limits.

Value of goods shall mean For the purposes of this rule, the consignment value of goods shall be the value, determined in accordance with the provisions of section 15, declared in an invoice, a bill of supply or a delivery challan, as the case may be, issued in respect of the said consignment and also includes the central tax, State or Union territory tax, integrated tax and cess charged, if any, in the document and shall exclude the value of exempt supply of goods where the invoice is issued in respect of both exempt and taxable supply of goods.