NITI Aayog Panel’s 17 Reforms to Ease MSME Burden
Why in the news
A NITI Aayog panel suggested 17 changes to lighten regulatory and financial pressure on MSMEs; ministries are reviewing timelines.
Key facts
- Chair: Rajiv Gauba; 17 reforms on credit, compliance, tax, disputes, CSR.
- Impact sought: simpler compliance, faster credit and cash flow, lower tax and audit burden, quicker dispute settlement.
| Theme | Recommendation |
|---|---|
| Credit | CGTMSE for manufacturing medium units; guarantee on TReDS receivables |
| Disputes | 75% pre-deposit of award by government bodies; at least 50% released after six months; sole arbitrator |
| Companies | Micro and small firms exempt from CSR; one board meeting yearly instead of two |
| Tax and GST | Tax audit limit ₹1 crore to ₹2 crore (over 5% cash receipts); lower GST penalties, interest, fewer returns |
Exam angle
- Bodies: CGTMSE, TReDS, MSME Development Act.
- Thresholds: no auditor needed below ₹1 crore turnover.