Union Finance Minister Nirmala Sitharaman will present Budget 2021 in Parliament House today. Economists believe that this will be the biggest challenging budget ever since the 90s. Government treasury is empty. MSMAE (Micro, Small and Medium Enterprises) sector is likely to get relief in this budget. According to experts, MSMEs should get relief in GST in Budget 2021. Last year the MSME sector was affected a lot due to Corona. In view of this, the government had given many benefits to the MSME sector under the self-reliant relief package.
Apart from this, experts believe that to increase business growth and encourage MSMEs, the GST rate on business services should be reduced to 5 percent, which is currently 18 percent. At present, the services which attract 18 per cent GST include chartered accountants, architects, HR, marketing, supply chain management and hosting, besides legal professionals, courier services and management consulting. Apart from this, IT infrastructure provisioning, maintenance, repair and installation services are also included in this list.
Also, apart from GST, another special provision can be announced for the MSME sector. It is believed that Union Finance Minister Nirmala Sitharaman has already indicated for this. Actually, the government gave many benefits to MSMEs in view of Corona. Meanwhile, more provisions are also likely to be made in the budget.
According to a recent report, in the budget, the central government can also give relief to MSMEs in the rules related to NPA. The NPA classification period can be extended from 90 days to 120 or 180 days for MSMEs. The government can give this relief to this sector as it is affected by the corona epidemic.