New Delhi, Feb 9 (KNN) Minister of State (I/C) for Micro, Small and Medium Enterprises (MSMEs) Giriraj Singh recently announced that the MSMEs with turnover of 250 crores that are registered with the GSTN are to get a relief up to 5 per cent in the income tax.

The Minister made the announcement during a press conference recently in the national capital.

Highlighting the step further, Singh said that with such relief in place, it is expected to help achieve two-fold objective, one being the push to the ease of doing business in the country and the other being formalisation of the informal economy.

The Minister also spoke of the other big announcements made for the sector recently.

Talking about the revision in the definition of the micro, small and medium enterprises, the Minister acknowledged that it had been a long pending demand raised by different MSME associations.

With regard to the extension given to the MSMEs for repayment of loans from the earlier period of 90 days to 180 days, the Minister said that this move is likely to address the problem of bad loans and bring down the NPAs.

Singh said that the announcements made for the MSMEs are to bring in fresh investments, both from investors within the country and from abroad as well.

Earlier commenting on the turnover based definition for the MSMEs, MSME body Federation of Indian Micro and Small & Medium Enterprises (FISME) term the step as historic and informed that the federation had been demanding the revision since long.

Also MSME Body Indian Industries Association said that the government’s decision to define the units based on the annual turnover is a positive step for the sector and will help things function in an efficient manner. (KNN/DA)