The Coimbatore Tirupur District Micro and Cottage Entrepreneurs Association has welcomed the announcement by Union Finance Minister Nirmala Sitharaman that small-scale Goods and Services Tax payers with annual turnover of less than ₹5 crore will pay 9% interest for returns filed for February to April 2020 after July 6, if filed by Sept. 30. Earlier, the interest rate was 18%.
These taxpayers can also pay tax for May to July 2020 by Sept. 30, and no late fee will be charged.
The Association president C. Sivakumar also urged the banks to issue guidelines on disbursing ₹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. Banks should extend cash credit and over draft facility to MSMEs that have only current account, he said.
