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

Western Suburbs Lead Mumbai’s Redevelopment Surge

Mumbai’s western suburbs are emerging as the centre of the city’s redevelopment boom as ageing residential societies, land scarcity and infrastructure upgrades reshape the urban landscape. Areas including Santacruz, Andheri, Goregaon, Kandivali and Dahisar are witnessing significant transformation, with older housing stock making way for modern residential developments. Redevelopment has become a major driver of urban growth, supported by strong housing demand, connectivity and established social infrastructure.Industry estimates indicate that Mumbai could see over 44,000 new homes worth n..

Next Story
Infrastructure Urban

GP Petroleums Q4 PAT Rises 8%

GP Petroleums reported an 8 per cent rise in PAT to Rs 9.3 crore in Q4FY26, compared to Rs 8.6 crore in Q4FY25. Revenue from operations stood at Rs 163 crore, compared to Rs 183 crore in the corresponding quarter last year.EBITDA for Q4FY26 increased to Rs 14.7 crore from Rs 13.2 crore in Q4FY25, while EBITDA margin improved to 9 per cent from 7 per cent. The company said its performance was supported by operational efficiencies, strong customer relationships and an expanding product portfolio.For FY26, revenue from operations rose 5 per cent to Rs 643 crore, compared to Rs 610 crore in FY25. ..

Next Story
Infrastructure Urban

Ramky Infra Order Book Crosses Rs 13,000 Crore

Ramky Infrastructure reported a resilient FY2026 performance, supported by disciplined execution, cost efficiency and fresh order wins. The company secured new orders worth Rs 4,500 crore during Q4, taking its total order book above Rs 13,000 crore as of 31 March 2026.Consolidated PAT grew 40 per cent year-on-year to Rs 283 crore in FY2026, compared to Rs 202 crore in FY2025. Standalone PAT rose 28 per cent to Rs 332 crore, while consolidated revenue from operations stood at Rs 1,846 crore. Standalone revenue from operations was Rs 1,679 crore.During the year, the company secured orders worth ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

-->