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GST, 45-day payment, credit, EoDB, more: Assocham-EGROW study suggests changes to overhaul MSME sector

The article from Financial Express discusses a study by ASSOCHAM and eGrow Foundation which suggests several reforms to overhaul the MSME sector in India. Key recommendations include revising the GST structure to benefit MSMEs, enforcing a 45-day payment rule to improve cash flow, enhancing credit access, and improving the ease of doing business. The study highlights the need for a simplified GST regime, where MSMEs could potentially benefit from a composition scheme with a lower tax rate. It also calls for strict enforcement of the 45-day payment rule to prevent large corporations from delaying payments to smaller suppliers. Additionally, the study proposes better credit facilities through mechanisms like invoice financing and suggests that banks should tailor their services to better meet the needs of MSMEs. The overarching goal is to foster an environment where MSMEs can thrive, contributing significantly to economic growth and employment.

Read the Full The Financial Express Article at [ https://www.financialexpress.com/business/sme-gst-45-day-payment-credit-eodb-more-assocham-egrow-study-suggests-changes-to-overhaul-msme-sector-3679230/ ]