Finanace minister considering incentives for small and medium companies

Micro and small industries were badly hit due to GST and demonitisation. Most of the micro companies have been closed and their accounts have been blocked.

The finance ministry is now considering to introduce more incentives for micro, small and medium enterprises (MSMEs) that comply with GST rules.

The incentives also include access to loans at discounted rates. MSMEs have been at the forefront of the protests against GST. Many of these enterprises operated in the informal economy and several got away by paying a fraction of the taxes they should have. The new tax regime has hit them hard. For instance, MSMEs that were suppliers to large companies were clearly told by the latter to comply with the regime. If they didn't, the larger companies couldn't claim input tax credit.