The MSME ministry will soon sign an agreement with GSTN, the IT backbone of GST, for sharing of data related to small and medium enterprises as it looks to widen its reach to such enterprises, an official source said.
Around 44 lakh micro, small and medium enterprises (MSMEs) are registered with the ministry's Udyog Aadhaar portal, while the number of MSMEs on GSTN database is around 1 crore.
As a result of the move, the number of MSMEs registered under Udyog Aadhaar could shoot up to one crore, the official said.
The data-sharing will enable the government to reach out to more MSMEs and educate them on benefits offered by government schemes.
Moreover, these businesses will be able to acquire credit at a lower cost, while improving the flow of credit.
The GST database of MSMEs has reached one crore. That is very authentic data, so now we are hoping that we can link our figures based on the Udyog Aadhaar with the GST data, a senior official in the ministry told PTI.
According to sources, top officials in the MSME ministry have already spoken to their counterparts in Finance in this regard.
Another official said an MoU (Memorandum of Understanding) will soon be signed for data sharing and integration between the MSME ministry and GSTN.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)