New Delhi, Oct 27 (KNN) In the aftermath of concerns of complications raised by the Micro, Small and Medium Enterprsies (MSMEs) of the country, The Group of Minister (GoM) constituted by the GST Council will soon meet with the representatives from the MSME sector.

The GoM was constituted during the last meeting of the GST Council against a backdrop of slowing down of the economy and sudden drop in GST returns.

At the last meeting the Council decided to allow some  relaxations in compliance for MSMEs,particularly regarding the exporters and the service sector.

However, structural barriers like unavailability of input tax credits till the invoices of the suppliers are matched, is causing blockage of enormous funds for MSMEs.

While the focus of the committee may be liberalisation of the Composition scheme and problems of small eateries with GST, MSMEs are looking at the GoM to take a comprehensive view on compliance related issues.

Another point of worry for the manufacturing MSMEs is the linkage of credit of taxes paid for transitional goods with submission of C forms by the deadline.

The GoM with the Assam finance minister Himanta Biswa Sarma in the chair has Bihar deputy chief minister Sushil Modi, Jammu and Kashmir finance minister Hasim Drabu, Punjab finance minister Manpreet Singh Badal and Chhattisgarh minister of commercial taxes Amar Agrawal as other members.

The purpose of the GoM’s meeting with MSME stakeholders is to understand the various problems which are baffling the MSMEs in GST compliance.

Commenting on the development, Dinesh Singhal, Past President of FISME and  a leading entrepreneur of Meerut mentioned that, if the issues of C form  and matching of suppliers’ invoices are not immediately addressed, MSMEs may not left with any working capital to operate.

Over and above the sickness in the large Companies, if MSMEs also are in trouble, the economy is facing a deep crisis Singhal warned.

It has been learnt by knn team that  the other important issues like  non interchangeability of CGST/ SGST, upfront GST claimed on advances received and time bar on claiming of input tax credits will figure in the presentations to be made by the MSMEs Association.

With state ministers who are  prime movers of the GST  as members, the MSMEs are eagerly looking forward to the GoM for a comprehensive policy package recommended by the  Group.

MSMEs will also be asking for efficient working of the GST Network whose malfunctioning has become a regular feature. (KNN/DB)