An Overview of Promotional Schemes for MSMEs’ in Budget-2023:
| The Revamped Credit Guarantee Scheme (Proposed in the budget for MSMEs’) | Will take effect from 1st April 2023.Infusion of ₹ 9000 crore in the corpus.Additional collateral-free guaranteed credit of ₹ 2 lakh crore.Cost of credit will be reduced by about 1%. |
| VIVAD SE VISHWAS I (Relief for MSMEs’) | Failure in execution of contracts by MSMEs’ during covid period relieved.95% of forfeited amount will be returned to MSMEs’ by Govt. undertakings. |
| VIVAD SE VISHWAS II (Settling Contractual Disputes) | Settlement of contractual disputes between MSMEs’ and Govt. undertakings.Voluntary Settlement Scheme with standardized terms will be introduced. |
| Presumptive Taxation Scheme Benefits. | Limits increased so as to: Reduce compliance burden.Promote non-cash transactions.Increases transparency. Enhanced new limits (Proposed limits): For businesses and MSME’s – 3 CroresFor professionals – 75 Lakhs Old limits: For businesses and MSME’s – 2 CroresFor professionals – 50 Lakhs |
| Deduction Under Section 43B | Deduction for Expenditure incurred on payments made to MSMEs’ only when payment is actually made (Section 43B). Allowed on accrual basis, if payment made within time mandated under MSMED Act, 2006.Aim of the move – small businesses get their dues from their clients without delays. |
| Others | PM Vishwakarma Kaushal Samman (PM VIKAS), Skill India Digital Platform, Basic Customs Duty (BCD) Benefit, PM Matsya Sampada Yojana, Facilitation of E-Commerce for Micro Enterprises, Basic Customs Duty (BCD), Skill India Digital Platform, Entity DigiLocker. |
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