According to recent data from the Reserve Bank of India (RBI), the share of credit extended to Micro, Small, and Medium Enterprises (MSMEs) in banks’ non-food credit reached 15% in October. The gross bank credit deployed by scheduled commercial banks for MSMEs under priority sector lending stood at Rs 23.15 lakh crore, marking a 22.8% increase from Rs 18.8 lakh crore in October last year and an 11.8% rise from Rs 20.6 lakh crore in September this year.
Robust Growth in MSE Credit
Within MSMEs, credit to micro and small enterprises (MSEs) experienced a notable 24.2% growth, reaching Rs 18.53 lakh crore compared to Rs 14.92 lakh crore during the same period last year. Similarly, credit to medium enterprises increased by 17.3% to Rs 4.61 lakh crore from Rs 3.93 lakh crore in October last year.
Concerns Raised by FICCI Survey
Despite the upward trend in MSME credit, a survey conducted by FICCI involving 610 respondents highlighted challenges. Collateral-free credit, touted on paper, reportedly faces implementation issues, with banks often requiring collateral for loan approvals. The survey also pointed out hesitancy from banks in providing financing to SMEs, and certain government schemes, like the Credit Guarantee Fund Trust for Micro and Small Enterprises Scheme (CGTMSE), facing limited effectiveness in aiding SMEs.
In response to the GST Council’s 52nd meeting, recommending amnesty for taxpayers unable to file appeals under section 107 of the CGST Act, the government issued Notification No. 53/2023 on November 2, 2023. The advisory outlines crucial procedures and provisions for taxpayers who missed filing appeals against demand orders under sections 73 or 74 of the CGST Act, 2017, passed on or before March 31, 2023, or whose appeals were rejected for not adhering to the specified timeframe.
Filing Appeals and Payment Procedures
Taxpayers now have the opportunity to file appeals using FORM GST APL-01 on the GST portal until January 31, 2024, for orders issued on or before March 31, 2023. It is emphasized that correct payments should accompany the appeal, with the GST Portal allowing various payment modes. The Appellate Authority will verify the payment’s correctness before entertaining the appeal.
Differential Payments for Existing Appeals
Taxpayers who previously filed appeals and wish to benefit from the amnesty scheme must make differential payments against the demand order using the “Payment towards demand” facility on the GST portal. A step-by-step navigation guide is provided for this purpose.
Refiling Appeals and Grievance Resolution
For those whose appeals were rejected as time-barred (APL-02), re-filing is allowed. Any issues encountered during re-filing should be addressed by raising a ticket on the Grievance Redressal Portal under the “Amnesty Scheme” category.
APL-04 Issued Cases and State Nodal Officer Route
In cases where the Appellate Authority issued rejection orders (APL-04) due to time constraints, direct representations will not be entertained. Instead, such cases must be forwarded through the State Nodal Officer, emphasizing adherence to the prescribed dates in the notification.
This advisory provides comprehensive guidance to ensure taxpayers navigate the amnesty scheme seamlessly, emphasizing correct filing procedures, payment protocols, and the appropriate channels for issue resolution.
Godrej Capital, the non-banking finance company (NBFC) arm of the Godrej Group, has forged strategic partnerships with Amazon, Visa, and DBS Bank India for its digital platform Nirmaan. The platform, launched in April this year, aims to provide a comprehensive suite of value-added services (VAS) for Micro, Small, and Medium Enterprises (MSMEs). Nirmaan now boasts a network of over 13 partners offering diverse VAS to enhance MSMEs’ market reach, financial support, legal compliance, employee well-being, and more.
Key Partnerships and Services
Amazon’s collaboration with Nirmaan enables MSMEs to showcase and sell their products on Amazon.in, facilitating both domestic and global market access through a three-month subscription to Amazon Global Selling. Visa offers MSMEs access to comprehensive payment solutions, while DBS Bank India provides a tailored current account and an array of value-added services.
Diverse Platform Offerings
Apart from Amazon, Visa, and DBS Bank India, Nirmaan’s partner ecosystem includes Onsurity (employee healthcare), Zolvit (tax and compliance support), MSMEx (advisory platform), and new partners like GeM Tech Paras (GeM consultancy), Escrowpay (digital escrow account), GreytHR (HR and payroll software), and Serapis Knowledge Solutions (strategy and research). This diverse range of services aims to address various facets of MSME operations.
Strategic Vision for MSME Growth
Manish Shah, MD & CEO at Godrej Capital, emphasized the company’s commitment to being catalysts in the MSME growth journey. Beyond lending, the focus is on providing holistic support to MSMEs. The collaborative efforts of Nirmaan’s partners align with the Godrej Group’s commitment to contributing to India’s journey towards becoming a 5 trillion-dollar economy.
