MSME sector demands action at state-level to clear pending refunds
New Delhi, Sep 9 (KNN) The micro, small and medium enterprises (MSME) sector demanded more action at state-level to clear pending refunds and reduce paper work which continues to be a painful exercise.
"Most small firms are under state’s jurisdiction where both refunds for CGST and SGST are done. On its part, the Centre has expedited the process but we have not seen the same speed at state level," said Animesh Saxena, President of Federation of Indian Micro Small & Medium Enterprises (FISME).
Smaller firms and traders with annual turnover below Rs 1.5 crore are under the administrative control of state tax department and the remaining 10 per cent with the Centre, while the large taxpayers with annual turnover above Rs 1.5 crore turnover is divided equally in the ratio of 50 per cent each for the central and the state tax administration.
On August 23, Finance Minister Nirmala Sitharaman had assured that all the pending GST refunds that are due to MSMEs till now will be executed within the period of 30 days. Fresh claims of refunds will be settled in 60 days in order to ensure working capital is not blocked.
As on July, 2019 there were 1.22 crore businesses registered with Goods and Services Tax Network (GSTN).