Suggestion to FM for Budget 2020

Perspectives of MSME, boatbuilding, innovation, renewable energy:

1. Remove discrimination against water transport. Currently FAME 2 support only for electric vehicles and not for electric boats.

2. Boatbuilders sell at 5%. Input is all 18% and 28%. Delay in refund of tax inversion to be avoided. Notification to get input tax at 5% is not followed by even customs department, working under finance ministry, while importing goods.

3. If service tax is also not included in tax inversion, it incentivises us to allocate services work to small firms without GST registration.

4. Central Govt PSU, Defense tenders kills MSME by keeping conditions like 80% on delivery and 20% after commissioning. The latest Cochin Shipyard tender for electric propulsion of 23 boats (for KMRL) kills MSME from participation (although MSME like Navalt have technology).

5. When Central Govt. PSU, Defense tenders go for global tender, forcing financing (due to payment terms), MSME with high cost of finance cost (12-16%) are at disadvantage against foreign players who get finance at 2-3%.

Will any of them be implemented?

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