The Modi government is all set to ease the burden for the small and medium-sized companies on Friday as the government is receiving flak over the fact of not controlling the balance losing economy of the country. The Prime Minister Narendra Modi, in a rare confession that economic sentiment had turned negative, defended his government’s handling of the economy this week, which in June quarter went to an annual 5.7%, the lowest rate in three years.
The Finance Minister Arun Jaitley will hold a meeting on Friday of the council for the Goods and Services Tax (GST), a historic reform that changed India’s 29 states into a single customs union for the first time. The officials who are well-informed about this meeting and industry bodies said that they supposed that the government to make simpler the filing of GST returns under GST to comfort the burden on smaller businesses. A lot of companies are also expecting that the government to increase the size of turnover levied on before they should begin filing returns. A senior lawmaker said that “We are not in a denial mode that there is a problem in the SME (small and medium enterprises) sector”, who’s working Modi’s office to fight the economic slowdown.
The head of the Federation of Indian Export Organisation, Ajay Sahai, said that he expected that the government to permit its 25,000 small and medium-sized members to file tax returns quarterly. “The drill to file returns is exhausting,” he said. “Informal sources of working capital (for smaller firms) have dried up,” said Anil Bhardwaj at the Federation of Indian Micro and Small and Medium Enterprises. He also conjectured that it would take another GST to start to have a positive impact on smaller companies. The Finance Minister has promised to promote economic growth more than last time’s 7%. Prime Minister Modi had built an image of Indian economic reformer who’s capable of generating jobs and wealth for a hugely increasing population, but downfall in the economy could impact the government as it would become a major cup of concern for the voters in upcoming state elections.
The investment is at its low, while the government had hiked the spending on infrastructure, but private investment had stayed null.