Government plan insurance plan for small merchants registered for the GST

NEW DELHI: Before the general elections, the government is considering a insurance scheme for the lakhs of small and medium-sized GST traders, to address some of the concerns of this segment.

According to sources, the plan could provide accidental insurance coverage on Pradhan Mantri Suraksha Bima Yojana (PMSBY) for traders at an affordable premium.

This could be based on the system put in place by the government of Uttar Pradesh for traders.

Sources said small traders could get accidental insurance coverage of up to 10 lakh Rs based on its turnover

The plan, if approved by the government, should be announced by the end of the month before the start of the budget session, the sources added.

PMSBY is currently providing accidental coverage of 2,000 Rs lakh at an affordable rate of Rs 12 per year. The Plan is open to people between the ages of 18 and 70 who have a savings account and who give their consent to enrollment and who can receive the automatic withdrawal by May 31st of each year.

In addition, the government also plans to provide concessional financing to merchants who wish to adopt computerization and improve their business.

A special policy could be formulated to encourage women entrepreneurs, sources said, adding that a higher interest subsidy would also be considered for these entrepreneurs.

Among the public contracts ordered from small traders, a certain percentage could be reserved for women entrepreneurs.

Last year, the government announced 59-minute loan sanctions, a relaxation of labor laws, easier compliance with environmental rules, and changes in corporate laws for small businesses. medium-sized enterprises in order to revive the country's second largest employment sector.

General elections are scheduled in the coming months.