No 'Samadhaan' for delayed payment to MSMEs

Christmas is right around the corner! Catch up on the latest news and updates in the world of MSMEs before the party.

This week’s edition covers:

The Ministry of Finance attributes the increasingly high GST collection trend to legislative and administrative initiatives to ease GST filing. 

November is the second month in a row to exceed the ₹ 1.30 lakh crore mark. Previously, October recorded a walloping ₹ 1,30,127 crores in GST revenue.

Reports confirm that while Central GST accounts for ₹ 23,978 crore State GST accounts for ₹ 31,127 crore of the total GST revenue in November.

Stay tuned as we dig deep into GST collection trends in the upcoming newsletters. 

A June 2021 report, by the ACCA, suggests that Indian MSMEs start with a credit gap of almost $380B. The glaring problem of credit shortage has increased the demand for a unified digital platform that will provide quick and easy credit to MSMEs. 

During the recent ‘Digital Payment Utsav’, IT Minister Ashwini Vaishnaw urged the banking industry to “create an innovative digital platform as powerful, seamless and robust as UPI” in three months.

The IT Minister’s urgent remarks come close on the heels of reports that SBI, NPCI, NSE are likely promoters of an “open” platform to curb digital monopolies. Is this cause for concern? Or a stoking of healthy competition?

Since its inception four years ago, to help Indian SMEs receive prompt payments, the Samadhaan scheme has been drowning in applications seeking relief. 

The number of applications received, reports suggest has crossed well past 1 Lakh. Of which, only 20% have either been repaid or mutually negotiated with buyers. 39% have yet to even be seen by a government official, while 27% are under due process at the moment. Meanwhile, the running total of delayed payments is fast approaching a hammer-blow 25,000 crore.

Calculations show, that it would take years to resolve the outstanding dues. The only viable solution seems to be a digital intervention that would fast-track the process and reduce manual labour. 

Good news for those who could come up with a digital solution to automate the Samadhaan system. Dire news for those who petitioned for aid under the scheme.

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