Problem of handling closing stock continues to haunt MSMEs in Northeast: FINER

New Delhi, Oct 5 (KNN) With the Goods and Services Tax (GST) entering its fourth month since implementation, the Micro, Small and Medium Enterprises (MSMEs) in the northeast region are facing problem over the closing stock with reference to the input tax credit, Federation of Industry & Commerce of North Eastern Region (FINER) informed.

Talking to KNN, R.S Joshi, Chairman of FINER explained the situation.

Joshi said that the MSMEs in the region have closing stock and are confused as to how to declare for input tax credit under the new taxation.

“There is a wave of fear among the MSMEs as they think that such declaration to the tax office might land them under scrutiny” said Joshi.

Explaining the situation further, Joshi said that the MSME never thought that such situation would come; therefore even the MSMEs aren’t at fault here.

Joshi said that the government must consider relaxation over the closing stock as it is a one-time thing, in order to eliminate the fear on the sector, that is already grappling with instability.

Commenting over the announcement of relaxation to the small exporters from furnishing bank in order to ease the capital blockage under GST, Joshi informed that the move is vital towards the sector; however an official notification from the government in this regard is still pending.

“The tax officials are still clueless about the new announcements, they say that the information has reached to them via media reports and there is no official notification so far”, Joshi added.

Also there are media reports surfacing that the government is considering quarterly filing provision for the MSMEs, but like other announcements, this one too is yet to be officially announced, he added. (KNN/ DA)