Question : Impact of Demonetisation-GST on MSME Sector

(a) whether several thousands of Micro, Small and Medium Enterprises (MSMEs) were shut down due to implementation of demonetisation and GST in the country;

(b) if so, the details thereof including the total registered MSMEs in the country as on date, State/UT-wise;

(c) whether the Government has conducted any study/assessment about the impact of GST and demonetisation on the MSMEs in the country, if so, the details and the outcome thereof;

(d) whether the Government has taken any effective steps to support and develop MSME units in the country including Tamil Nadu particularly under GST regime, if so,
the details thereof and total funds allocated in this regard; and

(e) the various steps taken by the Government to provide incentives and other encouragements to the best performing MSME units in the country?

MINISTER OF STATE (INDEPENDENT CHARGE)
FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SHRI GIRIRAJ SINGH)

(a): The Ministry of Micro, Small and Medium enterprises (MSME) has not received any such report on shut down of Micro, Small and Medium Enterprises (MSMEs) from the States/UTs.

(b): 48.40 lakh MSMEs have been registered at Udyog Aadhaar Memorandum (UAM) Portal from September, 2015 to 12th July, 2018 in the entire country. The registration details of MSMEs on UAM Portal (State/UT-wise) are given in Annexure.

(c): No.

(d): Government implements various schemes for support and development of MSMEs in the country including Tamil Nadu. Government has taken several pro-active measures for smooth implementation of GST for MSMEs like (i)exemption to Khadi fabric sold through Khadi and Village Industries Commission (KVIC) and KVIC certified institutions / outlets, (ii)majority of items produced by MSMEs in the band of 28% tax slab brought to lower slabs, (iii)composition levy extended upto turnover worth Rs. 150 lakh per annum, (iv) quarterly filing of returns extended upto turnover worth Rs. 150 lakh per annum or less, and (v) reverse charge mechanism has been kept in abeyance till September 2018. There are various schemes which are being implemented by Government of India in the country for development of MSMEs (which includes Tamil Nadu). Rs. 6552.61 Crore has been provided in the Union Budget during 2018-19 for the Ministry of MSME for support to and development of MSMEs in the country.

(e): The Ministry of MSME, with a view to recognizing the efforts and contribution of MSMEs, gives National Awards annually to selected entrepreneurs of MSME, under the scheme of National Awards.