Tiruchirapalli

MSME sector urges govt. to sanction relief package

Association calls for postponement of GST and Provident Fund payment

Micro, small and medium enterprises have urged the State government to offer a relief package to tide over the crisis caused by COVID-19.

In view of the production and business loss, the Tiruchi District Tiny and Small Scale Industries' Association has suggested postponement of GST (Goods and Services Tax) payment.

In a list of suggestions presented to the Tamil Nadu Small and Tiny Industries Association (TANSTIA), for further representation to the State Government, the Secretary of TIDITSSIA S. Gopalakrishnan said the SSI industries must be provided with subsidy for payment of salaries for workers.

There must be relaxation in the deadline for payment of provident fund and medical insurance, Mr. Gopalakrishnan said while committing the support of the TIDITSSIA for the efforts taken by the State Government to tackle the crisis caused by COVID 19.

Petition to CM

The MSME sector, which has been going through a testing time for the last two years, has already been affected in the aspects of statutory payments, non-availability of skilled labour, non-availability of raw materials and zero exports. The COVID 19 has resulted in economic shutdown, cancellation of orders, underutilisation of capcity, reduction in manpower, reduced output and revenue, the situation of non-payment of term loans and wages due to working capital constraints, and the tough situation created by GST and BS6 implementation, S. Anburajan, TANSTIA president, and M. Hindunathan, General Secretary, said in a petition they submitted to Chief Minister Edappadi K. Palaniswami.

The TANSTIA sought from the State government deferment of power bills, property tax, professional tax, and statutory taxes by six months. The loans taken from State financial institutions must be re-scheduled for six months at an interest rate of 5% for existing and new enterprises.

Likewise, SIDCO instalments and allotment payments must be deferred by six months.

The Electricity Board's minimum demand/ average charges need to be waived off and only the actual usages must be charged. TANSTIA being the apex body of MSME associations, its representative must find a place in the proposed monitoring committee, the petition said.

A demand for increasing the capital subsidy to 50 % with the same ceiling of Rs. 50 lakh was also raised.

The TANSTIA also urged the State government to prevail upon the Centre to defer payment of ESI, provident fund, and GST and thereafter waive interest for payment of the instalments for 12 months.

Deferment of advance tax and IT return filings by six months; instruction to banking and non-banking financial institutions to hold all recovery process of principal and interest amounts; a freeze in declaration of any MSME as Non-Performing Asset and keeping Sarfaesi Act on hold till March 2021; extension of letter of credit and packing credit; honouring of pending payments immediately by public sector units irrespective of the invoice date; payment of wages to workers covered under ESI and also others by the Employees State Insurance Corporation at the time of curfew; and one year moratorium till March 31, 2021, for repayment of principal and interest amounts to banks for all term loan and other loans.

Importers facing a financial crisis due to the fall in value of rupee against the US dollar have to be suitably reimbursed, TANSTIA emphasised.

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Printable version | Apr 8, 2020 2:28:29 AM | https://www.thehindu.com/news/cities/Tiruchirapalli/msme-sector-urges-govt-to-sanction-relief-package/article31157216.ece

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