India awaited the Interim Budget of 2019 eagerly as it was the first budget after the full implementation of GST. The nation expected it to include some perks for MSMEs, and the Finance Minister didn’t disappoint. There were numerous GST benefits for MSMEs in this budget.
Some of the major talking points of this Interim Budget in regards to GST include the exemption limit, which was doubled at one go. MSMEs do not have to register for GST as long as their turnover remains below the proposed exemption slab.
The Finance Minister also announced a new Composition scheme for enterprises with an annual turnover of below 50 Lakh. The GST rate for this scheme was also fixed at a lower tax slab to benefit businesses of this sector.
There was also an attempt to simplify the process of how to file GST. Initiatives were proposed to clarify the steps on how to file GST and GST returns online.
Apart from these, there were some minor drawbacks in the budget. For example, the Government could not meet the expectations of the domestic manufacturing sector.
Overall, the Interim Budget of 2019 was a welcome one for the MSME sector with multiple benefits and just a few shortfalls.