BENEFITS FOR MSME
DEFINITION OF MSME CHANGED (EXISTING AND REVISED DEFINITION OF MSMES)
Existing MSME Classification
Criteria: Investment in Plant & Machinery or Equipment
| Classification | Micro | Small | Medium |
| Mfg. Enterprises | Inv. < Rs. 25 lac | Inv. < Rs. 5 cr. | Inv. < Rs.10 cr. |
| Services Enterprise | Inv. < Rs. 10 lac | Inv. < Rs. 2 cr. | Inv. < Rs. 5 cr. |
Revised MSME Classification
Composite Criteria : Investment And Annual Turnover
| Classification | Micro | Small | Medium |
| Manufacturing & Services | Inv. < Rs. 1 cr. and Turnover < Rs.5 cr. |
Inv. < Rs. 10 cr. and Turnover < Rs.50 cr. |
Inv. < Rs. 20 cr. And Turnover < Rs.100 cr. |
Major Benefits for MSME
- Collateral Free automatic loan to MSME up to 20% of entire outstanding credit as on 29th February 2020. Borrowers up to Rs 25 crore outstanding & turnover up to Rs. 100 crore are eligible. Loans for 4 years with a moratorium of 1 year of principal repayment. No guarantees required. Scheme can be availed till 31st October 2020.
- CGTMSE with the support of 4000 Cr from Govt, will give partial credit guarantee to bank to allow them to give debt to promoters of MSME, who then will infuse the fund as equity.
- 50,000 crore equity infusion for expansion of MSME through Funds of Funds.
- Government will facilitate provision of Rs 20,000 crore subordinate debts for Stressed MSME which are NPA or stressed.
- Receivables from Govt and CPSEs to be released in 45 days.
- Global tenders will be disallowed in Government procurement tender upto Rs 200cr.
- E market linkage for MSME to be promoted.
Tax Changes
- All TDS and TCS rates reduced by 25% for Non-Salaried Resident Payments. Reduction is applicable from 14th May 2020 to 31st March 2021.
- All refunds to non-corporate business & profession to be issued immediately.
- All Income tax returns due date extended to 30th November 2020.
- Tax audit due date extended to 31st October 2020.
- All assessment getting barred on 30th September 2020 extended to 31st December 2020
- All assessment getting barred on 31st March 2021 extended to 30th September 2021
- Vivid Se Vishwas Scheme extended to 31st December 2020 without any additional payments.
EPF Benefits
Establishment Under Pradhan Mantri Garib Kalyan Package (PMGKP):
- EPF relief extended for the month of June, July & August and will be paid by Government.
Other Establishment covered by EPFO
- Statutory PF contribution of both employer and employee will be reduced to 10% from 12% for next 3 months (except CPSEs & PSU’s employer’s contribution).
NBFCs
- Government will launch a Rs 30,000 crore Special Liquidity Scheme for NBFCs/HFCs/MFIs. Under this scheme investment will be made in both primary and secondary market transactions in investment grade debt paper of NBFCs/HFCs/MFIs. Securities will be fully guaranteed by Government.
- Rs 45,000 crore Partial Credit Guarantee Scheme 2.0 for NBFCs/HFCs/MFIs. First 20% of loss will be borne by Government. AA paper & below will be eligible for investment.
- PFC/REC to infuse liquidity of Rs 90,000 cr to DISCOMs against receivables
- Central Public Sector Generation Companies shall give rebate to Discoms which shall be passed on to the final consumers (industries).
RERA
- Treat COVID-19 as an event of ‘Force Majeure’under RERA.
- Extend the registration and completion date suo-moto by 6 months.
- Regulatory Authorities may extend this for another period of upto 3 months, if needed.
- Issue fresh ‘Project Registration Certificates’ automatically with revised timelines.
- Extend timelines for various statuary compliances under RERA.
Contractors
- PSU contracts to be extended for upto 6 months so that contract may be completed including for PPP contracts.
