Mumbai: There was a growing concern among the companies about the delay in relief measures to tackle the impact of Coronavirus on the economy. But finally, the Finance Minister Nirmala Sitharaman announced a slew of measures to combat it. However, the economic package is expected to be announced soon.
Assocham and NAREDCO, President, Niranjan Hiranandani said, “A positive step indeed, with a broader economic package to be announced. The Finance Minister has made a slew of announcements, which largely defer mandatory filing dates in most instances from 31 March to 30 June 2020.
This rescheduling of regulatory compliances is much appreciated to combat the current statutory dues.”
The minister had relaxed the charges in minimum balance in accounts and debit card transactions as well, which will be a relief to the common man. Commenting on taxes and other fees, Director General of CII, Chandrajit Banerjee said, “Waiver of penalty, late fee and interest on GST will also help the industry cope up with the huge cash crunch, and thus, tide through these tough times.”
With the 21-day lockdown announced but 24x7 operation of Custom Clearance announced, the fear of hurting essential services stay rested. Adding to it, Gem and Jewellery Export Promotion Council of India (GJEPC), Vice Chairman, Colin Shah said, “Exporters welcome the announcement that Customs will now function as essential services and will be working 24X7 till 30 June 2020.
Shah claimed that the minister's announcement that companies with an annual turnover of less than Rs 5 crore will not be levied any interest, penalty or late fees with respect to GST till 30 June 2020 will help MSMEs in the gem and jewellery sector.”
Hiranandani stated that the statutory obligations relief for companies makes for a good starting point for the economic revival curve especially for the large base SME and MSMEs in India.
“Industry to look forward to the broader economic packages like one-time rollover for debt restructuring across the industries to be announced soon for resurrecting the economic health of Industries,” he concluded.
In the case of Insolvency and Bankruptcy Code (IBC), the announcement has come that the default threshold limit of Rs 1 lakh has been steeply raised to Rs 1 crore.
“This has come as a major relief to MSMEs. These measures will greatly help companies where matters are before NCLT,” Banerjee said.