‘Centre should bear burden of incentives to MSMEs’

Finance Minister Yanamala Ramakrishnudu on Saturday suggested in the GST Council meeting in New Delhi that the financial burden on account of the concessions and incentives proposed to be extended to the Micro, Small and Medium Enterprises (MSME) should be borne by the Central government in the form of reimbursement of the Central GST/Integrated GST.

According to an official release, Mr. Ramakrishnudu stressed the need to form separate committees to deal with the legal and fitment issues involved in the imposition of the GST on the MSMEs to report the same to the Group of Ministers. While agreeing in principle to incentivising digital payments, Mr. Ramakrishnudu stated that implementation should be examined in detail.

He requested that the TTD be kept outside the purview of the GST and that the products sold by the Girijan Cooperative Corporation be exempted from the indirect tax. He also brought to the Council’s notice the need to reduce the tax on 29 items used by the common people.