The Interim-Union Budget 2019 announced numerous MSME benefits. This sector currently contributes more than 30% to the GDP of this country.
The budget has announced several benefits for MSMEs starting with a 2% interest subvention on loans up to Rs. 1 Crore. Now, businesses will be able to get to enjoy the benefits of MSME for loan within 59 minutes, said Piyush Goyal.
Another announcement made was an increase in sourcing from MSMEs through Government eMarketplace (GeM). The rate was increased to 25% out of which a minimum of 3% will come from MSMEs owned by women. This budget laid stress on empowerment of women entrepreneurs as 70% beneficiaries of the Pradhan Mantri MUDRA loan Yojana are such individuals.
Furthermore, the GST exemption limit was raised to Rs. 40 Lakh; Rs. 20 Lakh for special category states (Himachal Pradesh and North East). The threshold limit of the GST Composition Scheme was also increased to Rs. 1.5 Crore.
The budget also raised the threshold limit of tax on presumptive income to Rs. 2 Crore. Also, the tax rate for companies with a turnover of up to Rs. 250 Crore saw a reduction to 25%. Lastly, this budget also abolished duties on 36 capital goods.
The MSME benefits in India announced in this budget will act in favour of 63 million registered and unregistered such companies.