GST Council Set to Roll Out MSME-Friendly Reforms

Union Finance Minister Nirmala Sitharaman stated on Tuesday that the next wave of GST changes would "definitely" create an open and transparent economy that benefits small companies and significantly reduces the burden of compliance.

She was delivering a speech during the 120th Foundation Day celebrations of Tamil Nadu-based City Union Bank, where President Droupadi Murmu was the Chief Guest. Sitharaman stated that Prime Minister Narendra Modi recently announced creation of a Task Force for next generation reforms defined by a clearer mandate of simplifying regulations, reducing compliance costs and developing a more enabling ecosystems for startups, Micro, Small and Medium enterprises and entrepreneurs.

"Complementing this, the planned roll out of the next generation GST reforms with the planned Council meeting tomorrow and day after, will set an economy absolutely open and transparent in the coming months and with further reduction in compliance burden, making it easier for small businesses to thrive" Sitharaman said.

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Sitharaman added that banks must not only increase credit but also provide impetus for infrastructure development, guarantee timely and need-based funding for MSMEs, bring the unbanked into the formal banking system, and meet a variety of needs where banking channels' assistance was essential if India was to move closer to its goal of Viksit Bharat 2047. "The guiding principles for this transformation must be trust, technology and transparency." she noted