E-Commerce and MSMEs: Highlights from the 2024 Budget Announcement

Tuesday, 23 July 2024, 12:51

The 2024 Budget introduces significant measures to bolster the e-commerce sector and empower MSMEs. The reduction of the TDS rate on e-commerce transactions from 1% to 0.1% will greatly enhance liquidity for sellers. New schemes will facilitate collateral-free purchases of machinery for MSMEs, while increased MUDRA loan limits and a lowered turnover threshold for TReDS registration will address existing credit challenges. Overall, this budget aims to stimulate growth within the e-commerce and MSME sectors.
Indiatimes
E-Commerce and MSMEs: Highlights from the 2024 Budget Announcement

E-Commerce Budget Announcement: Key Provisions

The 2024 budget has announced several measures aimed at enhancing the e-commerce sector and supporting MSMEs.

Major Highlights

  • TDS Rate Reduction: The TDS rate on e-commerce transactions has been reduced from 1% to 0.1%, significantly improving liquidity for sellers.
  • Collateral-Free Schemes: New schemes will allow MSMEs to purchase machinery and equipment without requiring collateral.
  • MUDRA Loan Limits: The budget increases MUDRA loan limits to facilitate better access to credit.
  • TReDS Registration: The turnover threshold for TReDS registration has been reduced, which aims to alleviate credit challenges in the MSME sector.

In conclusion, this budget aims to create a more favorable environment for e-commerce and MSMEs, addressing critical credit issues and encouraging growth.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


Related posts


Newsletter

Get the most reliable and up-to-date financial news with our curated selections. Subscribe to our newsletter for convenient access and enhance your analytical work effortlessly.

Subscribe