Budget 2022 : CIA bats for GST exemption, reclassification of NPA norms for MSMEs

With rising commodity prices, FISME wants the abolition of import duties on steel, copper, aluminum and polymers. (Representational Image; Source: ShutterStock)

The Consortium of Indian Associations (CIA) has sought creating a separate Development Commissioner to and look after exclusive needs of micro enterprises in the upcoming Union Budget.

The government has kickstarted consultations with industry bodies for Budget 2022, and has sought suggestions from industry and trade bodies as a precursor to the Finance Bill 2022.

Every year, the Budget is keenly followed and this year will be no different. While the recovery continues from two COVID-19 shocks, the small business sector has also been severely hit due to the increased freight rates, high costs of raw materials and coal shortage.

It also recommended that micro enterprises with turnover upto Rs. 5 crore be exempted from Goods and Service tax (GST) for a period of 12 months and the NPA (Non Performing Asset) norms for the micro enterprises are reclassified as 120 days from the date of missing of an EMI.