A COVID19 Relief Package for SMEs
ECONOMY & POLICY

A COVID19 Relief Package for SMEs

Fiscal stimulus through Direct Benefit Transfer is surely the way to help the economically weaker sections but what about the 7,00,000 tax paying SMEs? Their businesses are completely jolted and disrupted. Even from the 70 million SMEs in the country 99% have a turnover of less than Rs 250 crores (Rs 2.5 billion). They do not have the cash to run the operation for more than a month or two and hence the government needs to act and FAST!

Here is the "Relief Package" that the Govt of India needs to introduce for SMEs due to the COVID19 outbreak.

1. Defer tax payment deadlines by a month
2. All defaults on contracts expecting execution by March to be given a three-month extension.
3. Allow corporates / firms paying taxes of less that Rs 50 lacs, a three-month extension
4. Loan defaults which have got triggered in Jan-March 2020 to be given a six-month extension
5. Extend Vivaad se Vishwas amnesty scheme by two months and release all dues back to the taxpayer once settled.
6. Announce 'interest payment holiday' for borrowers bearing loans during Jan - March 2020 for three months
7. Align GST rates to two slabs
8. All employers, who do not retrench staff during March - June 2020 and have a turnover of less than Rs 250 crores (Rs 2.5 billion), to be given a tax deduction of 25% of tax payable
9. Tax refunds & exporter drawbacks held up need to be released on an urgent basis
10. Legal compliances for PF/ GST/ TDS need to be considered leniently for April 2020

Pratap Padode, Founder, ASAPP Info Global Group, and Founder & Executive Director at FIRST Construction Council and Smart Cities Council India


Fiscal stimulus through Direct Benefit Transfer is surely the way to help the economically weaker sections but what about the 7,00,000 tax paying SMEs? Their businesses are completely jolted and disrupted. Even from the 70 million SMEs in the country 99% have a turnover of less than Rs 250 crores (Rs 2.5 billion). They do not have the cash to run the operation for more than a month or two and hence the government needs to act and FAST! Here is the Relief Package that the Govt of India needs to introduce for SMEs due to the COVID19 outbreak.1. Defer tax payment deadlines by a month 2. All defaults on contracts expecting execution by March to be given a three-month extension. 3. Allow corporates / firms paying taxes of less that Rs 50 lacs, a three-month extension 4. Loan defaults which have got triggered in Jan-March 2020 to be given a six-month extension 5. Extend Vivaad se Vishwas amnesty scheme by two months and release all dues back to the taxpayer once settled. 6. Announce 'interest payment holiday' for borrowers bearing loans during Jan - March 2020 for three months 7. Align GST rates to two slabs 8. All employers, who do not retrench staff during March - June 2020 and have a turnover of less than Rs 250 crores (Rs 2.5 billion), to be given a tax deduction of 25% of tax payable 9. Tax refunds & exporter drawbacks held up need to be released on an urgent basis 10. Legal compliances for PF/ GST/ TDS need to be considered leniently for April 2020 Pratap Padode, Founder, ASAPP Info Global Group, and Founder & Executive Director at FIRST Construction Council and Smart Cities Council India

Next Story
Real Estate

CREDAI-MCHI to Host 10th Design & Construction Conference

CREDAI-MCHI will host the 10th anniversary edition of its Design & Construction Conference on August 19, 2026, at the Jio World Convention Centre in Mumbai.The event is expected to bring together more than 500 procurement leaders, construction heads, architects, consultants and senior real estate decision-makers, alongside over 50 construction and ancillary brands.The conference will feature product launches, technology showcases, knowledge sessions, strategic business-to-business networking and recognition of procurement professionals contributing to the transformation of the construction..

Next Story
Infrastructure Energy

BorgWarner Wins Extension for High-Voltage Inverter Programmes

BorgWarner has secured a major extension of several high-volume high-voltage inverter programmes from a leading European automotive manufacturer.The contracts cover updated inverter designs for plug-in hybrid and 800V battery-electric vehicle applications. Production is scheduled to begin in 2029.Isabelle McKenzie, President and General Manager, BorgWarner PowerDrive Systems, said the programme extensions demonstrate the company’s position in power electronics and reflect the strength of its technology, in-house expertise and customer relationships.For plug-in hybrid vehicles, BorgWarner wil..

Next Story
Infrastructure Urban

Castrol India Q2 Profit Rises 43% to Rs 3.48 bn

Castrol India reported a 43 per cent year-on-year increase in profit after tax to Rs 3.48 billion for the quarter ended June 30, 2026, supported by growth across its consumer, industrial and institutional businesses.Revenue from operations increased 25 per cent to Rs 18.71 billion during the second quarter of 2026, compared with Rs 14.97 billion in the corresponding period of 2025. EBITDA rose 41 per cent to Rs 4.94 billion from Rs 3.50 billion.Sequentially, revenue increased from Rs 15.45 billion in the first quarter of 2026, while EBITDA rose from Rs 3.29 billion. Profit after tax increased ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement