MSME asset classification relief: standard asset treatment subject to conditions, specified provisioning and limits on income recognition. Banks and NBFCs may maintain exposure to MSME borrowers as standard assets during GST transition if borrowers were GST-registered by the reference date, had aggregate exposure within the prescribed threshold and were standard earlier, and if overdue amounts and instalments due during the transition are paid within an extended cure period; lenders must make a specified provisioning which may be reversed once the account no longer breaches the applicable delinquency norm, and interest overdue beyond that norm cannot be recognised on accrual.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
MSME asset classification relief: standard asset treatment subject to conditions, specified provisioning and limits on income recognition.
Banks and NBFCs may maintain exposure to MSME borrowers as standard assets during GST transition if borrowers were GST-registered by the reference date, had aggregate exposure within the prescribed threshold and were standard earlier, and if overdue amounts and instalments due during the transition are paid within an extended cure period; lenders must make a specified provisioning which may be reversed once the account no longer breaches the applicable delinquency norm, and interest overdue beyond that norm cannot be recognised on accrual.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
TaxTMI 
