Big Compliance Relief for Small Businesses; Govt Panel Proposes Multiple Changes in MSMEs' Regulation:

Big Compliance Relief for Small Businesses; Govt Panel Proposes Multiple Changes in MSMEs' Regulation According to sources quoted by CNBC-TV18, a high-level government panel led by Rajiv Gauba, who is the Cabinet Secretary, has recently suggested several changes in the regulation of MSMEs (Micro, Small and Medium Enterprises) in India. These changes are aimed at providing major compliance relief to MSMEs and will reduce the burden. These reforms are designed to make it easier for small businesses to operate in the country, help them save money, and encourage more of them to become part of the formal economy. Here's the comprehensive guide to these proposals, sequence-wise: 1. Businesses with an annual turnover of less than Rs. 1 crore may soon be exempted from compulsory audits. Meaning, small businesses will not be required to spend extra funds and time getting their accounts audited by professionals every year. This will reduce compliance costs and burden.

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2. In order to make life easier, the panel has proposed several regulatory changes to make compliance easier for MSMEs. These changes will permit business owners to focus more on their work rather than on complex regulations. 3. The Credit Guarantee Scheme is anticipated to be expanded for companies with medium annual turnover. This move will help more businesses access credit easily and grow without financial hurdles. The Credit Guarantee Scheme, operated by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), helps small businesses get loans without providing any collateral. 4. MSMEs who have missed any compliance deadline or made any errors for the first time will now receive warnings instead of penalties. This change encourages honest businesses and supports those who make unintentional mistakes.

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5. With these new proposals, the interest or penalty charged on late tax payments is likely to reduce, which will help ease the working capital pressure on small firms. This means MSMEs will have more breathing room when they face short-term cash crunches. 6. It has also been suggested by the panel to remove the mandatory Corporate Social Responsibility (CSR) requirement for MSMEs. This is being done to cut down the regulatory burden, as smaller companies often struggle with the cost and complexity of CSR compliance.

#CNBCTV18Exclusive | Major Compliance Relief For Small Biz & MSMEs

Sources To CNBC-TV18: Panel led by Rajiv Gauba has proposed multiple changes in regulation of MSMEs 👉Firms with turnover under ₹1 crore may soon be exempt from mandatory audits 👉Reforms aim to simplify… pic.twitter.com/XdfeGfo3XZ — CNBC-TV18 (@CNBCTV18Live) October 24, 2025