Saahil Bhanot’s Post

When policy introduced for ease of business became a challenge!!! The government’s decision to impose a payment deadline for dues owed to small businesses has backfired. According to a CNBC Awaaz report, more than 40,000 Indian small businesses, including 12,000 in Gujarat, have cancelled their registration and approached the Supreme Court with an appeal to remove the mandated rule to clear payments within 45 days. What can be the reason for this an effective implementation of trade cycle, credit period and timely fulfillment of demand and suppy, etc. Before implementing 45 days it was urged to setup a proper trade cycle and to introduce this periods in parts rather than direct implementation. As Indian economy completely works on MSME and major crunch of businesses are MSME where small players are creating impact. Source: CNBC #msme #smallbusinesses #economy #government #court #supremecourt https://lnkd.in/dq_z_BuA

UPDATES of the day 03.05.2024 LEGAL MAXIM Boni judicis est ampliare jurisdictionem – It is the part of a good judge to enlarge his jurisdiction, i.e. remedial authority. MSME Thousands of India’s MSMEs cancel registration as payment deadline hits business According to a CNBC Awaaz report, more than 40,000 Indian small businesses, including 12,000 in Gujarat, have cancelled their registration and approached the Supreme Court with an appeal to remove the mandated rule to clear payments within 45 days. Under section 43H (B) of the Income Tax Act 1961, anyone buying goods from any of the 36 million micro, small, and medium enterprises (MSME) in India must pay the money due within 45 days. The unpaid dues are added to the buyer’s profit. Read more at:  https://lnkd.in/g4w8J2j8

#MSMEs #43H(B) #IncomeTaxAct #FinanceMinistry #UnEaseOfDoingBusiness Thousands of India’s MSMEs cancel registration as payment deadline hits business A new rule mandating a 45-day deadline for payments due to micro, small, and medium enterprises (MSME) took effect on April 1. Traders in Gujarat are moving court blaming the new rule for orders drying up. According to a CNBC Awaaz report, more than 40,000 Indian small businesses, including 12,000 in Gujarat, have cancelled their registration and approached the Supreme Court with an appeal to remove the mandated rule to clear payments within 45 days. Under section 43H (B) of the Income Tax Act 1961, anyone buying goods from any of the 36 million micro, small, and medium enterprises (MSME) in India must pay the money due within 45 days. The unpaid dues are added to the buyer’s profit. My Musings : This outcome was predicted. However good the intent behind passing this rule, finance ministry has underestimated the power of industry corridors. In the world of doing (or giving) business assurances, Busineses have many strategies in place, to drive "their policies". It's these revised policies which will hurt businesses. Started hurting . Intent Vs Realities can never be the same . Ease of Doing Business Assurances may result in Unease of Doing Business too. MSME Registrations are created for a purpose, to give a business identity to businesses, to cover them under some schemes, some subsidies etc. Cancelling their registration will impact them later. Suprised that businesses are cancelling their registrations . Does it mean that they don't see any Value , any benefits from this Registration ? Post says there are 36 million registered MSMEs in India which is 3.6 crores business entities.. MCA portal says there are 14 lacs registered business entities in India. Number staying outside MCA radar is very high. Ratio of market place business entities Vs legal entities seem so high. But globally also , these ratios are like this. https://lnkd.in/grB6MCAY

👉The Ministry of MSME Govt. of India has taken several measures to deal with pending and delayed payments faced by the MSME sector: ▶️Ministry of MSME launched a portal viz. Samadhaan Portal for filing of grievances and for monitoring of the outstanding dues to the MSEs from the buyers of goods and services on 30.10.2017. ▶️Ministry of MSME has created a special sub-portal within Samadhaan Portal on 14.06.2020, after the AatmaNirbhar Bharat announcements, for reporting the dues and monthly payments by Central Ministries/Department/Public Sector Enterprises to MSMEs 💡Government of India has instructed CPSEs and all companies with the turnover of INR 500 crore or more to get themselves on-boarded on the Trade Receivables Discounting System (#TReDS), an electronic platform for facilitating the discounting of trade receivables of MSMEs through multiple financiers. ✅Under the provisions of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, Micro and Small Enterprises Facilitation Council (MSEFCs) have been set up in the States/UTs to deal with the cases of delayed payments of the MSEs. ✅More than 157 Micro and Small Enterprises Facilitation Council (MSEFCs) have been set up with more than one MSEFC set up in States like Delhi, Gujarat, Jammu & Kashmir, Karnataka, Kerala, Maharashtra, Punjab, Rajasthan, Tamil Nadu, Telangana, U.P. & West Bengal. ▶️Companies which get supplies of goods or services from MSEs and whose payment to MSEs exceeds 45 days from the date of acceptance or the date of deemed acceptance of the goods or services, also need to submit a half yearly return to the Ministry of Corporate Affairs stating the amount of payments due and the reasons of the delay. ▶️Under Section 43B of Income Tax Act: Deduction has been allowed for expenditure incurred on payments only when payment is actually made to MSMEs. #msme #TReDS Ministry of Micro, Small and Medium Enterprises, Government of India CIMSME - Punjab Council WASME - SME WORLD

Certainly! Here's a concise LinkedIn template you can use to share your thoughts about the GSTIN number of Prathamesh Wagh's company: --- 🌟 **Thoughts on GSTIN for Prathamesh Wagh's Company** "🔍 Exploring the world of GSTIN! 📊 As we navigate the complex landscape of taxation, understanding the Goods and Services Tax Identification Number (GSTIN) becomes crucial. Prathamesh Wagh's company recently obtained its unique GSTIN (27ACUPW5939Q2Z1) in Maharashtra. 🌐 🔑 **Benefits of GSTIN**: 1. **Legal Compliance**: Ensures adherence to GST laws. 2. **Input Tax Credit (ITC)**: Claim ITC on input taxes. 3. **Interstate Transactions**: Facilitates seamless trade across states. 4. **E-Commerce Participation**: Opens doors to online marketplaces. 5. **Business Expansion**: Enables growth beyond borders. Let's embrace the power of GSTIN and propel our businesses forward! 💪🏼💼 #GST #BusinessInsights" --- Feel free to customize this template to reflect your unique perspective! 🚀👍🏼

A quick referencer .

📣 GST Registration Challenges for Online MSME Traders in India ~ FIRST India The Forum for Internet Retailers, Sellers & Traders (FIRST) India, a division of the India Small and Medium Enterprises (SME) Forum, has raised concerns about the difficulties faced by potential sellers in obtaining GST registration. The process, intended to facilitate ease of doing business, has become burdensome due to incorrect interpretations and stringent requirements from the registration authorities. Sellers applying for registration are being subjected to scrutiny and unnecessary requests for clarification on trivial matters. This includes queries regarding the use of shared spaces for business operations, the presence of the applicant at their desk on all working days, and the justification for choosing Tamil Nadu as the state of registration despite having a presence in other states. The lack of understanding and adherence to GST guidelines by the authorities is causing unwarranted hardships for sellers seeking business opportunities in the state. Let’s hope for a more streamlined and efficient GST registration process that truly facilitates ease of doing business. #GST #MSME #BusinessInIndia #EaseOfDoingBusiness

INTEREST IS PAYABLE TILL THE DATE OF CASH DEPOSIT IN THE ELECTRONIC CASH LEDGER(ECL), HELD IN THE CASE OF --ARYA COTTON INDUSTRIES & ANR. VERSUS UNION OF INDIA & ANR. 2024 (7) TMI 239 - GUJARAT HIGH COURT. Cash Balance in The Electronic Cash Ledger is like advance GST Tax. Example-GSTR3B of April 2023 file on 4-7-24, GST Liability - 1,00,000. Balance in ECL is Rs.90,000 since April 2023, and ITC Balance is Rs. NIL. As Held by Gujarat in the case of ARYA COTTON INDUSTRIES Interest u/s 50 is payable only on Rs. 10,000. If Rs. 10,000 was deposited on 01-06-2024 and returned filed on 4-7-24, then Interest is payable for Period 21-05-2024 to 01-06-2024.

https://lnkd.in/ddc526e5 𝗜𝗻𝘁𝗿𝗼𝗱𝘂𝗰𝘁𝗶𝗼𝗻 𝗼𝗳 𝗦𝗲𝗰𝘁𝗶𝗼𝗻 𝟰𝟯𝗕(𝗛) The Finance Act 2023 introduced Section 43B(H) in the Income Tax Act 1961, 𝗿𝗲𝗾𝘂𝗶𝗿𝗶𝗻𝗴 𝗽𝗮𝘆𝗺𝗲𝗻𝘁𝘀 𝘁𝗼𝘄𝗮𝗿𝗱𝘀 𝗴𝗼𝗼𝗱𝘀 𝘀𝘂𝗽𝗽𝗹𝗶𝗲𝗱 𝗯𝘆 𝗠𝗶𝗰𝗿𝗼 𝗮𝗻𝗱 𝗦𝗺𝗮𝗹𝗹 𝗘𝗻𝘁𝗲𝗿𝗽𝗿𝗶𝘀𝗲𝘀 (𝗠𝗦𝗠𝗘𝘀) 𝘁𝗼 𝗯𝗲 𝗺𝗮𝗱𝗲 𝘄𝗶𝘁𝗵𝗶𝗻 𝟰𝟱 𝗱𝗮𝘆𝘀, aligning with provisions in the MSMED Act, 2006 aimed at ensuring prompt payments to MSMEs. 𝗖𝗼𝗻𝗰𝗲𝗿𝗻𝘀 𝗳𝗿𝗼𝗺 𝘁𝗵𝗲 𝗧𝗲𝘅𝘁𝗶𝗹𝗲 𝗦𝗲𝗰𝘁𝗼𝗿 The Tamilnadu Spinning Mills Association (TASMA) expressed concern over the 𝗻𝗲𝘄 𝗰𝗹𝗮𝘂𝘀𝗲, 𝘀𝘁𝗮𝘁𝗶𝗻𝗴 𝘁𝗵𝗮𝘁 𝗶𝘁 𝗵𝗮𝘀 𝗰𝗮𝘂𝘀𝗲𝗱 𝗽𝗮𝗻𝗶𝗰 𝗮𝗺𝗼𝗻𝗴 𝘀𝘂𝗽𝗽𝗹𝗶𝗲𝗿𝘀 𝗮𝗻𝗱 𝗯𝘂𝘆𝗲𝗿𝘀 𝗶𝗻 𝘁𝗵𝗲 𝘁𝗲𝘅𝘁𝗶𝗹𝗲 𝘃𝗮𝗹𝘂𝗲 𝗰𝗵𝗮𝗶𝗻. 𝗧𝗵𝗲𝘆 𝗮𝗿𝗴𝘂𝗲 𝘁𝗵𝗮𝘁 𝘁𝗵𝗲 𝗶𝗻𝗱𝘂𝘀𝘁𝗿𝘆 𝗵𝗮𝘀 𝗯𝗲𝗲𝗻 𝗼𝗽𝗲𝗿𝗮𝘁𝗶𝗻𝗴 𝘀𝗺𝗼𝗼𝘁𝗵𝗹𝘆 𝘄𝗶𝘁𝗵 𝗽𝗮𝘆𝗺𝗲𝗻𝘁 𝗽𝗲𝗿𝗶𝗼𝗱𝘀 𝗼𝗳 𝘂𝗽 𝘁𝗼 𝟵𝟬 𝗱𝗮𝘆𝘀, and the imposition of a 45-day limit could disrupt trade dynamics. 𝗥𝗲𝗾𝘂𝗲𝘀𝘁 𝗳𝗼𝗿 𝗔𝗺𝗲𝗻𝗱𝗺𝗲𝗻𝘁 TASMA has urged the Finance and MSME Ministries to amend the clause to allow for a 90-day payment settlement period with MSMEs. They propose this amendment to be either a general change to the Act or specifically tailored to the textile industry, considering its unique business practices and value-addition processes. #msme #payments #textileindustry

  CICU Chamber of Industrial and Commercial Undertakings holds a meeting with all Prominent associations regarding the industrial views on the amendment in chapter 43B(H)Clause if IT Act of income tax. Some of the members were in Favour of the amendment whereas many others opposed the move. CICU stated that we understand that the act is made by the Govt. of India to bring Indian business and payment methods at par with the international business and to attract more international trade in India.  a representation in this regard is being sent to the Finance Ministry and MSME ministry with some changes for the smooth implementation of the law. To realign the business again the law should be defer by at least 6 months and all the traders and the medium scale industry should be included in it. As such the certificate of trader is still an ambiguity to all. Also the payment days should be increased to 75 days, otherwise all the preference will be given only to medium scale industry as they are not included the act. #msme #smebusiness #manufacturing #manufacturingtechnology #ministries #pmoindia #charteredaccountant #punjab #ludhiana #export #businessadvisory #business #associations #chamberofcommerce #consultants #taxadvisory #industryleaders #policymaking #iasofficer #automotive