Businesses not Under GST to Get 180 Days to Pay Back Their Loans
As part of the interim relief work for small companies not registered in GST, the Reserve Bank of India extended the loan repayment date to 180 days from the date of maturity without being classified as a non-productive asset. This latest announcement comes after the enactment of legislation in April, which allowed the taxes of goods and services to register borrowers of SMEs, with turnover up to? Rs 25 crore to delay repayment of loans in 180 days.
“Taking into account the lines of credit received and related problems, it is now decided to allow banks and NBFC institutions to temporarily classify their exposure, in accordance with the 180-day maturity criterion, for all micro and small enterprises with credit limits added to the previous limit (Indian) “, Including unregistered under GST”.
The central bank faces demands that it continue to be lenient with SMEs because it is the largest employer and is under severe pressure to implement a GST that has hampered its economic prospects. MIPYME accounts which were standard on 31 August 2017 and where the outstanding balance did not exceed 31 January 2017?
25 crores would be eligible for support. Under current regulations, banks and NBFC are classified as unprofitable if they can not repay a loan within 90 days.
GST payment mechanism
The easing of the central bank occurs when the promotion of the GST payment mechanism results in benefits from the formalization of the economy, including better tax liability. “Considering the benefits of increasing the formalization of the economy for financial stability, 180 days of delay” “The standard, with respect to fees payable by small and small companies registered as of January 1, 2019 onwards, will be met with the current 90 day rule “In a gradual manner, while entities not registered under GST until 31 December 2018, the classification of assets with respect to maturities due from 1 January 2019 onwards will immediately return to the rule 90 days.