Business Economy

Paid 97% of GST refunds due to MSMEs, says FinMin

As much as 97% of GST refunds due to MSMEs (Micro, Small and Medium Enterprises) as of August 23 has been paid by the government, according to the Finance Ministry.

In a status report on the implementation of measures announced by Finance Minister Nirmala Sitharaman in August and September, the Finance Ministry said that of the ₹10,841 crore pending refunds as of August 23, ₹10,490 crore has been paid as of October 24.

The report said that of the ₹70,000 crore upfront liquidity recapitalisation promised to banks, ₹60,314 crore had been infused into banks in September through recapitalisation bonds, including ₹4,557 crore in IDBI Bank.

Public sector banks have accorded sanction to purchase ₹21,580 crore of pooled assets of NBFCs, a measure that was promised by the Finance Minister in her announcement made on August 23. On the subject of co-origination of loans by banks with NBFCs, the Finance Ministry said that as of October 16, eight banks had a total of 16 tie-ups in place with NBFCs/HFCs.

The Department of Expenditure issued a circular on September 17 lifting the ban on purchase of new vehicles by Ministries and government Departments. A vehicle scrappage policy has also been formulated and circulated for comments of stakeholders/general public by November 15.

The Finance Ministry issued an ordinance on September 20 amending the Income Tax Act to provide relief from enhanced surcharge on capital gains to all investors. On the issue of angel tax, the Central Board of Direct Taxes has issued a consolidated circular for assessment of start-ups and a Start-up Cell had been constituted, as promised.


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